CEO tenure and firm performance – propensity score matching (PSM) analysis
| Variable(s) | Treatment firms | Control firms | Difference | t-stat | |
|---|---|---|---|---|---|
| Panel A: Quality of propensity score matching (PSM) | |||||
| Dependent variable | |||||
| TOBINSQ | 1.9881 | 1.6334 | 0.3547 | 2.19** | |
| Control variable(s) | |||||
| CEO_AGE | 2.7315 | 2.7232 | −0.0083 | −0.31 | |
| CEO_GENDER | 0.1045 | 0.1143 | −0.0098 | −0.39 | |
| CEO_FOUNDER | 0.2647 | 0.2516 | 0.0131 | 0.37 | |
| CEO_DUAL | 0.1470 | 0.1797 | −0.0327 | −1.09 | |
| SIZE | 19.1230 | 19.2030 | −0.0800 | −0.51 | |
| LEV | 0.2133 | 0.2290 | −0.0157 | −0.92 | |
| LOSS | 0.1012 | 0.1112 | −0.0100 | −0.17 | |
| Panel B: CEO tenure and firm performance using PSM regressions | |||||
| Variable(s) | Model 1 | ||||
| Coefficient (t-value) | |||||
| CEO_TENURE | 0.1601** (2.24) | ||||
| CEO_AGE | −0.6911 (−0.45) | ||||
| CEO_GENDER | −1.1912*** (−3.89) | ||||
| CEO_FOUNDER | 0.2512 (1.19) | ||||
| CEO_DUAL | −0.4892** (−2.23) | ||||
| SIZE | −0.2611*** (−4.87) | ||||
| LEV | −1.9910*** (−4.27) | ||||
| LOSS | −0.0082 (−1.12) | ||||
| Constant | 8.5328* (1.84) | ||||
| YEAR_FE | Yes | ||||
| INDUSTRY_FE | Yes | ||||
| Adj R2 | 0.1598 | ||||
| N | 532 | ||||
| Variable(s) | Treatment firms | Control firms | Difference | t-stat | |
|---|---|---|---|---|---|
| TOBINSQ | 1.9881 | 1.6334 | 0.3547 | 2.19 | |
| CEO_AGE | 2.7315 | 2.7232 | −0.0083 | −0.31 | |
| CEO_GENDER | 0.1045 | 0.1143 | −0.0098 | −0.39 | |
| CEO_FOUNDER | 0.2647 | 0.2516 | 0.0131 | 0.37 | |
| CEO_DUAL | 0.1470 | 0.1797 | −0.0327 | −1.09 | |
| SIZE | 19.1230 | 19.2030 | −0.0800 | −0.51 | |
| LEV | 0.2133 | 0.2290 | −0.0157 | −0.92 | |
| LOSS | 0.1012 | 0.1112 | −0.0100 | −0.17 | |
| Variable(s) | Model 1 | ||||
| Coefficient ( | |||||
| CEO_TENURE | 0.1601 | ||||
| CEO_AGE | −0.6911 (−0.45) | ||||
| CEO_GENDER | −1.1912 | ||||
| CEO_FOUNDER | 0.2512 (1.19) | ||||
| CEO_DUAL | −0.4892 | ||||
| SIZE | −0.2611 | ||||
| LEV | −1.9910 | ||||
| LOSS | −0.0082 (−1.12) | ||||
| Constant | 8.5328 | ||||
| YEAR_FE | Yes | ||||
| INDUSTRY_FE | Yes | ||||
| Adj | 0.1598 | ||||
| 532 | |||||
Note(s): Table 8 reports the regression results testing the relationship between CEO tenure and firm performance following the propensity score matching approach. 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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