Company performance and women on the board: OLS, fixed effect and two-stage least squares (2SLS)
| (1) | (2) | (3) | (4) | (5) | (6) | |
|---|---|---|---|---|---|---|
| ROA | EVT | ROA | EVT | ROA_W | EVT_W | |
| Variables | OLS | OLS | Firm fixed effects | Firm fixed effects | 2SLS | 2SLS |
| GD_04_ | 0.175** (0.085) | 0.011 (0.009) | 0.002 (0.051) | –0.004* (0.002) | 0.178*** (0.055) | 0.012** (0.005) |
| GD_07_ | –0.182 (0.128) | –0.018 (0.014) | 0.093 (0.094) | –0.002 (0.004) | –0.188** (0.081) | –0.02*** (0.007) |
| FI_02_ | –0.107 (0.081) | –0.002 (0.01) | –0.026 (0.048) | 0.002 (0.002) | –0.097* (0.053) | –0.003 (0.005) |
| BZ_02_ | –0.168 (0.195) | –0.004 (0.017) | –0.213 (0.165) | –0.001 (0.008) | –0.175 (0.129) | –0.005 (0.008) |
| GW_ | 0.106*** (0.019) | 0.004** (0.002) | 0.11*** (0.016) | 0.004*** (0.001) | 0.115*** (0.021) | 0.004*** (0.001) |
| CR_ | 0.102 (0.417) | –0.107*** (0.033) | 0.602** (0.296) | –0.078*** (0.014) | 0.195 (0.264) | –0.111*** (0.017) |
| DE_ | –2.78*** (0.491) | –0.274*** (0.055) | –3.111*** (0.405) | –0.232*** (0.019) | –2.757*** (0.279) | –0.266*** (0.024) |
| AGE_ | –0.003 (0.018) | –0.001 (0.002) | –0.23*** (0.089) | 0.016*** (0.004) | 0.001 (0.01) | –0.001 (0.001) |
| PB_ | 3.493*** (0.274) | 0.505*** (0.031) | 2.81*** (0.261) | 0.341*** (0.013) | 3.462*** (0.163) | 0.505*** (0.014) |
| SIZE_ | –1.267 (0.785) | –0.193 (0.126) | 0.955 (1.241) | –0.229*** (0.06) | –1.154** (0.476) | –0.194*** (0.047) |
| _cons | 13.925** (5.329) | 2.209*** (0.749) | 11.478 (7.405) | 2.12*** (0.355) | 12.35*** (2.958) | 2.211*** (0.295) |
| Observations | 1220 | 1220 | 1220 | 1220 | 1109 | 1109 |
| R-squared | 0.384 | 0.68 | 0.24 | 0.49 | 0.396 | 0.691 |
| (1) | (2) | (3) | (4) | (5) | (6) | |
|---|---|---|---|---|---|---|
| ROA | EVT | ROA | EVT | ROA_W | EVT_W | |
| Variables | OLS | OLS | Firm fixed effects | Firm fixed effects | 2SLS | 2SLS |
| GD_04_ | 0.175 | 0.011 (0.009) | 0.002 (0.051) | –0.004 | 0.178 | 0.012 |
| GD_07_ | –0.182 (0.128) | –0.018 (0.014) | 0.093 (0.094) | –0.002 (0.004) | –0.188 | –0.02 |
| FI_02_ | –0.107 (0.081) | –0.002 (0.01) | –0.026 (0.048) | 0.002 (0.002) | –0.097 | –0.003 (0.005) |
| BZ_02_ | –0.168 (0.195) | –0.004 (0.017) | –0.213 (0.165) | –0.001 (0.008) | –0.175 (0.129) | –0.005 (0.008) |
| GW_ | 0.106 | 0.004 | 0.11 | 0.004 | 0.115 | 0.004 |
| CR_ | 0.102 (0.417) | –0.107 | 0.602 | –0.078 | 0.195 (0.264) | –0.111 |
| DE_ | –2.78 | –0.274 | –3.111 | –0.232 | –2.757 | –0.266 |
| AGE_ | –0.003 (0.018) | –0.001 (0.002) | –0.23 | 0.016 | 0.001 (0.01) | –0.001 (0.001) |
| PB_ | 3.493 | 0.505 | 2.81 | 0.341 | 3.462 | 0.505 |
| SIZE_ | –1.267 (0.785) | –0.193 (0.126) | 0.955 (1.241) | –0.229 | –1.154 | –0.194 |
| _cons | 13.925 | 2.209 | 11.478 (7.405) | 2.12 | 12.35 | 2.211 |
| Observations | 1220 | 1220 | 1220 | 1220 | 1109 | 1109 |
| R-squared | 0.384 | 0.68 | 0.24 | 0.49 | 0.396 | 0.691 |
Notes:
Robust standard errors are in parentheses. *** p < 0.01, ** p < 0.05, * p < 0.1
ROA = return on assets; EVT = enterprise value; GD_04 = proportion of female directors sitting on the board; GD_05 = proportion of male directors sitting on the board; GD_07 = proportion of female executive directors sitting on the board; FI_02 = percentage of independent non-executive women directors on board; CR = current ratio; GW = growth opportunities; PB = price to book ratio; SIZE = company size; AGE = number of years of the company since its incorporation
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