CEO tenure and firm performance – robustness tests
| Variable(s) | One year lagged effects | Firm fixed effects | Change analysis |
|---|---|---|---|
| Model 1 | Model 2 | Model 3 | |
| Coefficient (t-value) | Coefficient (t-value) | Coefficient (t-value) | |
| CEO_TENURE | 0.0901*** (2.71) | 0.1067** (2.11) | 0.0118** (2.41) |
| CEO_AGE | 0.5491 (0.72) | 0.3511 (0.62) | 0.4012 (0.71) |
| CEO_GENDER | −0.6199*** (−2.98) | −0.8411** (−2.11) | −0.1159 (−1.29) |
| CEO_FOUNDER | 0.0410 (0.25) | 0.0911 (0.48) | −0.1125 (−0.59) |
| CEO_DUAL | −0.0695 (−0.39) | −0.1592 (−0.59) | 0.0288 (0.17) |
| SIZE | −0.2619*** (−7.11) | −0.2568*** (−3.79) | −0.0489 (−1.59) |
| LEV | −0.5641*** (−3.11) | −0.5891*** (−2.92) | −0.2721 (−1.39) |
| LOSS | −0.0035 (−0.24) | −0.0031 (−0.27) | −0.0011 (−0.01) |
| Constant | 1.0678** (2.62) | 1.2789*** (2.72) | 0.9912*** (4.11) |
| YEAR_FE | Yes | Yes | Yes |
| INDUSTRY_FE | Yes | Yes | Yes |
| FIRM FE | No | Yes | Yes |
| Adj R2 | 0.1951 | 0.2014 | 0.0912 |
| N | 1,420 | 1,522 | 1522 |
| Variable(s) | One year lagged effects | Firm fixed effects | Change analysis |
|---|---|---|---|
| Model 1 | Model 2 | Model 3 | |
| Coefficient ( | Coefficient ( | Coefficient ( | |
| CEO_TENURE | 0.0901 | 0.1067 | 0.0118 |
| CEO_AGE | 0.5491 (0.72) | 0.3511 (0.62) | 0.4012 (0.71) |
| CEO_GENDER | −0.6199 | −0.8411 | −0.1159 (−1.29) |
| CEO_FOUNDER | 0.0410 (0.25) | 0.0911 (0.48) | −0.1125 (−0.59) |
| CEO_DUAL | −0.0695 (−0.39) | −0.1592 (−0.59) | 0.0288 (0.17) |
| SIZE | −0.2619 | −0.2568 | −0.0489 (−1.59) |
| LEV | −0.5641 | −0.5891 | −0.2721 (−1.39) |
| LOSS | −0.0035 (−0.24) | −0.0031 (−0.27) | −0.0011 (−0.01) |
| Constant | 1.0678 | 1.2789 | 0.9912 |
| YEAR_FE | Yes | Yes | Yes |
| INDUSTRY_FE | Yes | Yes | Yes |
| FIRM FE | No | Yes | Yes |
| Adj | 0.1951 | 0.2014 | 0.0912 |
| 1,420 | 1,522 | 1522 |
Note(s): Table 7 reports the regression results testing the relationship between CEO tenure and firm performance using a change (and lag effect) analysis and firm fixed effect regression. All variable definitions are in Appendix. ***, ** and * represent statistical significance at the 1,5 and 10% levels, respectively (two-tailed tests)
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