CEO tenure and firm performance – Heckman selection analysis
| Variable(s) | First stage | Second stage |
|---|---|---|
| Coefficient (t-value) | Coefficient (t-value) | |
| DEP = CEO_TENURE | DEP = TOBINSQ | |
| CEO_TENURE | – | 0.0231*** (2.92) |
| CEO_AGE | 4.1911*** (6.27) | −6.8897** (−2.48) |
| CEO_GENDER | 0.4426*** (2.69) | −1.2531*** (−4.88) |
| CEO_FOUNDER | 1.1711*** (8.11) | −1.7912** (−2.47) |
| CEO_DUAL | −0.0569 (−0.65) | −0.0511 (−0.39) |
| SIZE | −0.0412 (−1.52) | −0.1825*** (−5.71) |
| LEV | 0.0511 (0.29) | −0.6518*** (−5.29) |
| LOSS | −1.0029 (−0.29) | −0.0036 (−0.19) |
| Inverse mill ratio | −2.112** (−2.49) | |
| Constant | −16.2519*** (−7.19) | 31.7641*** (2.88) |
| YEAR_FE | Yes | Yes |
| INDUSTRY_FE | Yes | Yes |
| Pseudo R2/Adj R2 | 0.1800 | 0.1803 |
| N | 1,522 | 1,522 |
| Variable(s) | First stage | Second stage |
|---|---|---|
| Coefficient ( | Coefficient ( | |
| DEP = CEO_TENURE | DEP = TOBINSQ | |
| CEO_TENURE | – | 0.0231 |
| CEO_AGE | 4.1911 | −6.8897 |
| CEO_GENDER | 0.4426 | −1.2531 |
| CEO_FOUNDER | 1.1711 | −1.7912 |
| CEO_DUAL | −0.0569 (−0.65) | −0.0511 (−0.39) |
| SIZE | −0.0412 (−1.52) | −0.1825 |
| LEV | 0.0511 (0.29) | −0.6518 |
| LOSS | −1.0029 (−0.29) | −0.0036 (−0.19) |
| Inverse mill ratio | −2.112 | |
| Constant | −16.2519 | 31.7641 |
| YEAR_FE | Yes | Yes |
| INDUSTRY_FE | Yes | Yes |
| Pseudo | 0.1800 | 0.1803 |
| 1,522 | 1,522 |
Note(s): Table 9 reports the regression results testing the relationship between CEO tenure and firm performance following the Heckman selection analysis. 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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