Table 13 Co-opted board and change in...

Table 13

Co-opted board and change in performance and market valuation

	(1)	(2)	(3)	(4)	(5)	(6)
	CH1ROA	CH1ROA	CH1ROA	CH1TOBINQ	CH1TOBINQ	CH1TOBINQ
PCO_OPT	−0.0596**	–	–	−0.2364*	–	–
PCO_OPT	(−2.27)			(−1.95)
NCO_OPT	–	−0.0032*	–	–	−0.0163*	–
NCO_OPT		(−1.71)			(−1.74)
RCO_OPT	–	–	−0.0585**	–	–	−0.2437**
RCO_OPT			(−2.20)			(−2.00)
CONSTANT	0.1935	0.1667	0.1555	−0.6816	−0.8119	−0.8395
CONSTANT	(1.31)	(1.07)	(1.00)	(−0.39)	(−0.47)	(−0.49)
Controls	Yes	Yes	Yes	Yes	Yes	Yes
Year fixed effects	Yes	Yes	Yes	Yes	Yes	Yes
Industry fixed effects	Yes	Yes	Yes	Yes	Yes	Yes
R²	0.0184	0.0178	0.0184	0.1546	0.1543	0.1546
N	7,932	7,932	7,932	7,776	7,776	7,776

	(1)	(2)	(3)	(4)	(5)	(6)
	CH1ROA	CH1ROA	CH1ROA	CH1TOBINQ	CH1TOBINQ	CH1TOBINQ
PCO_OPT	−0.0596**	–	–	−0.2364*	–	–
PCO_OPT	(−2.27)			(−1.95)
NCO_OPT	–	−0.0032*	–	–	−0.0163*	–
NCO_OPT		(−1.71)			(−1.74)
RCO_OPT	–	–	−0.0585**	–	–	−0.2437**
RCO_OPT			(−2.20)			(−2.00)
CONSTANT	0.1935	0.1667	0.1555	−0.6816	−0.8119	−0.8395
CONSTANT	(1.31)	(1.07)	(1.00)	(−0.39)	(−0.47)	(−0.49)
Controls	Yes	Yes	Yes	Yes	Yes	Yes
Year fixed effects	Yes	Yes	Yes	Yes	Yes	Yes
Industry fixed effects	Yes	Yes	Yes	Yes	Yes	Yes
R²	0.0184	0.0178	0.0184	0.1546	0.1543	0.1546
N	7,932	7,932	7,932	7,776	7,776	7,776

Note(s): This table presents the regression results of co-opted board on firms’ change in performance (ROA) and market valuation (Tobin Q) with other control variables. Robust two-tailed t-statistics clustered by firm are presented in parentheses. The superscripts ***, ** and * correspond to statistical significance at the 1%, 5% and 10% levels, respectively. See the Appendix for the variable definitions

Source(s): Authors’ own work

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