Table 8 Addressing endogeneity problems...

Table 8

Addressing endogeneity problems using instrumental variable (IV) method

Variables	Coef	Std. Err	Wald	p-value
FemaleDirector	0.259	0.631	0.169	0.681
MaleCEO	0.124	0.024	5.184	0.000
CEODegree	0.987	0.682	2.095	0.148
CEOQual	1.079	0.570	3.576	0.059
Intercept and controls	Included
YEAR_FE included
IND_FE	Included
Chi-square	0.278
Observations	1,445

Variables	Coef	Std. Err	Wald	p-value
FemaleDirector	0.259	0.631	0.169	0.681
MaleCEO	0.124	0.024	5.184	0.000
CEODegree	0.987	0.682	2.095	0.148
CEOQual	1.079	0.570	3.576	0.059
Intercept and controls	Included
YEAR_FE included
IND_FE	Included
Chi-square	0.278
Observations	1,445

Dependent variables	Complexity1	Complexity1	Complexity2		Complexity3
Variables	Coef	t-stat	Coef	Stat	Coef	Stat
PredCEOOC	1.999***	3.031	1.331***	2.818	2.099**	2.586
CEOTen	0.044	1.478	0.032	1.494	0.040	1.071
CEOFinExpt	0.000	0.002	−0.022	−0.123	0.188	0.618
BInd	−0.208	−0.326	−0.143	−0.314	−0.155	−0.198
BFinExpt	0.827	1.565	0.550	1.454	0.441	0.679
InstOwn	1.568***	2.828	1.095***	2.756	1.500**	2.198
Size	0.388***	4.968	0.267***	4.784	0.439***	4.567
ROA	0.260	0.360	0.281	0.542	1.941**	2.180
Accruals	0.902	1.628	0.616	1.552	0.643	0.943
Loss	−0.381	−1.028	−0.219	−0.824	−0.258	−0.566
SalesG	0.142	0.843	0.106	0.878	0.051	0.244
MTB	0.085**	2.135	0.059**	2.065	0.081*	1.657
LnAge	0.012	0.041	−0.034	−0.155	0.207	0.549
ForeignS	0.054	0.189	0.037	0.178	−0.276	−0.778
Segment	0.479**	2.240	0.358**	2.337	0.420	1.595
Intercept	4.079***	1.973	8.834***	5.967	0.888	0.349
YEAR_FE included
IND_FE	Included		Included		Included
Adj_R²	0.265		0.254		0.212
F	3.555***		3.409***		2.898***
Observations	1,445		1,445		1,445

Dependent variables	Complexity1	Complexity1	Complexity2		Complexity3
Variables	Coef	t-stat	Coef	Stat	Coef	Stat
PredCEOOC	1.999***	3.031	1.331***	2.818	2.099**	2.586
CEOTen	0.044	1.478	0.032	1.494	0.040	1.071
CEOFinExpt	0.000	0.002	−0.022	−0.123	0.188	0.618
BInd	−0.208	−0.326	−0.143	−0.314	−0.155	−0.198
BFinExpt	0.827	1.565	0.550	1.454	0.441	0.679
InstOwn	1.568***	2.828	1.095***	2.756	1.500**	2.198
Size	0.388***	4.968	0.267***	4.784	0.439***	4.567
ROA	0.260	0.360	0.281	0.542	1.941**	2.180
Accruals	0.902	1.628	0.616	1.552	0.643	0.943
Loss	−0.381	−1.028	−0.219	−0.824	−0.258	−0.566
SalesG	0.142	0.843	0.106	0.878	0.051	0.244
MTB	0.085**	2.135	0.059**	2.065	0.081*	1.657
LnAge	0.012	0.041	−0.034	−0.155	0.207	0.549
ForeignS	0.054	0.189	0.037	0.178	−0.276	−0.778
Segment	0.479**	2.240	0.358**	2.337	0.420	1.595
Intercept	4.079***	1.973	8.834***	5.967	0.888	0.349
YEAR_FE included
IND_FE	Included		Included		Included
Adj_R²	0.265		0.254		0.212
F	3.555***		3.409***		2.898***
Observations	1,445		1,445		1,445

Note(s): Statistical significance is denoted by *p < 0.10, **p < 0.05, ***p < 0.01. Variables are as defined in Appendix 2

Source(s): Author’s own creation

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