Definition of the variables
| Variable | Definition |
|---|---|
| Board characteristics | |
| Board size | Number of directors on the board |
| Executive Directors | Proportion of executive directors on the board |
| Independent Directors | Proportion of independent directors on the board |
| Female Directors | Proportion of female directors on the board |
| Female Dummy | Dummy variable equal to 1 if at least one female director holds a board seat |
| Female CEO | Dummy variable equal to 1 if the CEO is female and otherwise 0 |
| Female Chair | Dummy variable equal to 1 if the Chair is female and otherwise 0 |
| Female CEO or Chair | Dummy variable equal to 1 if the CEO or Chair is female and otherwise 0 |
| Firm characteristics | |
| Risk | The standard deviation of a firm’s daily stock return over the prior 12 months |
| ROA | Return on assets: net income divided by total assets |
| Market-to-book | Market value of common equity divided by book value of common equity |
| Firm age | Number of years since the firm’s inception |
| Firm size | Log of firm’s total assets |
| Family firm | Dummy variable equal to 1 if the firm is a family firm and otherwise 0 |
| Family must have at least 20% ownership and two managerial positions in the firm |
| Variable | Definition |
|---|---|
| Board size | Number of directors on the board |
| Executive Directors | Proportion of executive directors on the board |
| Independent Directors | Proportion of independent directors on the board |
| Female Directors | Proportion of female directors on the board |
| Female Dummy | Dummy variable equal to 1 if at least one female director holds a board seat |
| Female CEO | Dummy variable equal to 1 if the CEO is female and otherwise 0 |
| Female Chair | Dummy variable equal to 1 if the Chair is female and otherwise 0 |
| Female CEO or Chair | Dummy variable equal to 1 if the CEO or Chair is female and otherwise 0 |
| Risk | The standard deviation of a firm’s daily stock return over the prior 12 months |
| ROA | Return on assets: net income divided by total assets |
| Market-to-book | Market value of common equity divided by book value of common equity |
| Firm age | Number of years since the firm’s inception |
| Firm size | Log of firm’s total assets |
| Family firm | Dummy variable equal to 1 if the firm is a family firm and otherwise 0 |
| Family must have at least 20% ownership and two managerial positions in the firm |
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