Table 1.

Definition of the variables

VariableDefinition
Board characteristics 
Board sizeNumber of directors on the board
Executive DirectorsProportion of executive directors on the board
Independent DirectorsProportion of independent directors on the board
Female DirectorsProportion of female directors on the board
Female DummyDummy variable equal to 1 if at least one female director holds a board seat
Female CEODummy variable equal to 1 if the CEO is female and otherwise 0
Female ChairDummy variable equal to 1 if the Chair is female and otherwise 0
Female CEO or ChairDummy variable equal to 1 if the CEO or Chair is female and otherwise 0
Firm characteristics 
RiskThe standard deviation of a firm’s daily stock return over the prior 12 months
ROAReturn on assets: net income divided by total assets
Market-to-bookMarket value of common equity divided by book value of common equity
Firm ageNumber of years since the firm’s inception
Firm sizeLog of firm’s total assets
Family firmDummy 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
Source: Authors’ own work

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