Table 6 Chair-CEO age dissimilarity and...

Table 6

Chair-CEO age dissimilarity and firm value

	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)	(10)
	TOBINQ	TOBINQ	TOBINQ	TOBINQ	MKTBK	MKTBK	MKTBK	TOBINQ	MKTBK	VIF
GAPS		−0.003***			−0.000***			−0.003***	−0.000***	1.14
GAPS		(−3.854)			(−3.517)			(−3.973)	(−3.476)
GAPU			−0.005***	−0.007**		−0.000***	−0.000**			1.14
GAPU			(−4.202)	(−2.480)		(−4.341)	(−2.520)
GAPSQU				0.000			0.000			8.62
GAPSQU				(0.805)			(0.757)
DIFEDU	−0.026	−0.026	−0.024	−0.024	−0.001**	−0.001**	−0.001**	−0.023	−0.001**	1.18
DIFEDU	(−1.113)	(−1.112)	(−1.035)	(−1.018)	(−2.400)	(−2.319)	(−2.308)	(−1.013)	(−2.245)
DIFGEN	0.011	0.014	0.021	0.022	0.000	0.000	0.000	0.009	0.000	1.03
DIFGEN	(0.491)	(0.608)	(0.894)	(0.947)	(0.505)	(0.801)	(0.853)	(0.367)	(0.419)
DIFNAT	0.274***	0.274***	0.289***	0.290***	0.004***	0.004***	0.004***	0.277***	0.004***	1.02
DIFNAT	(3.799)	(3.776)	(3.968)	(3.984)	(4.859)	(5.060)	(5.083)	(3.827)	(4.946)
JONTENU	0.047***	0.046***	0.041***	0.041***	0.001***	0.001***	0.001***	0.044***	0.001***	6.34
JONTENU	(8.792)	(8.562)	(7.465)	(7.255)	(10.987)	(9.865)	(9.609)	(8.311)	(10.613)
CHANGE1	0.012	0.013	0.018	0.019	0.000	0.000	0.001	0.020	0.001	1.05
CHANGE1	(0.190)	(0.202)	(0.278)	(0.292)	(0.616)	(0.697)	(0.714)	(0.306)	(0.767)
TENURE1	−0.036***	−0.033***	−0.032***	−0.032***	−0.000***	−0.000***	−0.000***	−0.022***	−0.000***	3.31
TENURE1	(−11.490)	(−10.719)	(−10.048)	(−9.996)	(−10.171)	(−9.787)	(−9.727)	(−7.446)	(−6.372)
CHANGE2	0.055	0.055	0.056	0.056	0.000	0.000	0.000	0.038	0.000	1.04
CHANGE2	(0.692)	(0.699)	(0.708)	(0.717)	(0.499)	(0.509)	(0.518)	(0.486)	(0.231)
TENURE2	−0.026***	−0.027***	−0.025***	−0.025***	−0.000***	−0.000***	−0.000***	−0.019***	−0.000***	4.67
TENURE2	(−5.202)	(−5.351)	(−4.846)	(−4.799)	(−5.899)	(−5.403)	(−5.342)	(−3.844)	(−3.863)
BODAGE	0.007***	0.008***	0.008***	0.008***	0.000*	0.000*	0.000*	0.011***	0.000***	1.41
BODAGE	(2.619)	(2.907)	(2.903)	(2.892)	(1.862)	(1.880)	(1.869)	(3.777)	(2.995)
BODSIZE	−0.000	−0.000	0.000	0.000	0.000*	0.000*	0.000*	0.001	0.000**	1.13
BODSIZE	(−0.071)	(−0.007)	(0.069)	(0.105)	(1.666)	(1.746)	(1.765)	(0.177)	(2.167)
CVBA	−0.257	−0.179	−0.097	−0.114	−0.001	0.001	0.000	−0.172	−0.001	1.21
CVBA	(−1.537)	(−1.089)	(−0.577)	(−0.668)	(−0.252)	(0.274)	(0.176)	(−1.055)	(−0.458)
LEVER	−0.206**	−0.210**	−0.210**	−0.210**	−0.007***	−0.007***	−0.007***	−0.217**	−0.007***	1.41
LEVER	(−2.263)	(−2.315)	(−2.309)	(−2.299)	(−6.505)	(−6.484)	(−6.472)	(−2.389)	(−6.591)
CapEx/TA	2.256***	2.259***	2.263***	2.262***	0.033***	0.033***	0.033***	2.263***	0.034***	1.13
CapEx/TA	(10.354)	(10.370)	(10.363)	(10.362)	(12.444)	(12.431)	(12.421)	(10.383)	(12.547)
FFIRM	0.068***	0.068***	0.069***	0.068***	0.001**	0.001**	0.001**	0.073***	0.001**	1.67
FFIRM	(2.831)	(2.809)	(2.876)	(2.781)	(2.206)	(2.267)	(2.196)	(3.050)	(2.273)
FIRMAGE	−0.001	−0.001	−0.001	−0.000	−0.000***	−0.000***	−0.000***	−0.000	−0.000***	1.70
FIRMAGE	(−0.230)	(−0.298)	(−0.226)	(−0.196)	(−4.696)	(−4.627)	(−4.625)	(−0.169)	(−4.116)
R&D	5.540***	5.530***	5.509***	5.509***	0.089***	0.089***	0.089***	5.525***	0.088***	1.74
R&D	(5.621)	(5.618)	(5.599)	(5.599)	(8.645)	(8.610)	(8.611)	(5.628)	(8.644)
SALEGR	0.161***	0.161***	0.160***	0.160***	0.003***	0.003***	0.003***	0.158***	0.003***	1.05
SALEGR	(5.933)	(5.933)	(5.915)	(5.918)	(8.658)	(8.645)	(8.649)	(5.743)	(8.392)
FSIZE	−0.655***	−0.654***	−0.655***	−0.655***	0.033***	0.033***	0.033***	−0.652***	0.033***	1.84
FSIZE	(−19.426)	(−19.402)	(−19.377)	(−19.374)	(96.826)	(96.651)	(96.647)	(−19.293)	(96.719)
BETA	−0.898***	−0.898***	−0.900***	−0.900***	−0.009***	−0.009***	−0.009***	−0.895***	−0.009***	1.30
BETA	(−7.670)	(−7.672)	(−7.708)	(−7.708)	(−5.494)	(−5.517)	(−5.518)	(−7.661)	(−5.491)
STOCKVOL	0.671***	0.671***	0.671***	0.671***	0.009***	0.009***	0.009***	0.671***	0.009***	1.80
STOCKVOL	(8.928)	(8.937)	(8.950)	(8.948)	(9.942)	(9.954)	(9.953)	(8.906)	(9.929)
CVMBA								−0.238	−0.002	1.17
CVMBA								(−1.458)	(−1.053)
MBSIZE								−0.060**	0.000	1.18
MBSIZE								(−2.100)	(0.678)
MBTENU								−0.050***	−0.001***	2.80
MBTENU								(−5.791)	(−6.004)
SBSIZE								0.032	−0.001**	1.34
SBSIZE								(1.214)	(−2.398)
Constant	16.795***	16.754***	16.766***	16.774***	2.407***	2.407***	2.407***	16.692***	2.407***
Constant	(22.801)	(22.757)	(22.702)	(22.744)	(316.319)	(315.410)	(315.486)	(23.055)	(321.595)
Industry	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Year	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Observations	37,200	37,200	37,200	37,200	37,200	37,200	37,200	37,200	37,200
Adjusted-R²	0.4162	0.4164	0.4165	0.4165	0.8903	0.8904	0.8904	0.4172	0.8905
Mean VIF	–	–	–	–	–	–	–	–	–	2.88

	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)	(10)
	TOBINQ	TOBINQ	TOBINQ	TOBINQ	MKTBK	MKTBK	MKTBK	TOBINQ	MKTBK	VIF
GAPS		−0.003***			−0.000***			−0.003***	−0.000***	1.14
GAPS		(−3.854)			(−3.517)			(−3.973)	(−3.476)
GAPU			−0.005***	−0.007**		−0.000***	−0.000**			1.14
GAPU			(−4.202)	(−2.480)		(−4.341)	(−2.520)
GAPSQU				0.000			0.000			8.62
GAPSQU				(0.805)			(0.757)
DIFEDU	−0.026	−0.026	−0.024	−0.024	−0.001**	−0.001**	−0.001**	−0.023	−0.001**	1.18
DIFEDU	(−1.113)	(−1.112)	(−1.035)	(−1.018)	(−2.400)	(−2.319)	(−2.308)	(−1.013)	(−2.245)
DIFGEN	0.011	0.014	0.021	0.022	0.000	0.000	0.000	0.009	0.000	1.03
DIFGEN	(0.491)	(0.608)	(0.894)	(0.947)	(0.505)	(0.801)	(0.853)	(0.367)	(0.419)
DIFNAT	0.274***	0.274***	0.289***	0.290***	0.004***	0.004***	0.004***	0.277***	0.004***	1.02
DIFNAT	(3.799)	(3.776)	(3.968)	(3.984)	(4.859)	(5.060)	(5.083)	(3.827)	(4.946)
JONTENU	0.047***	0.046***	0.041***	0.041***	0.001***	0.001***	0.001***	0.044***	0.001***	6.34
JONTENU	(8.792)	(8.562)	(7.465)	(7.255)	(10.987)	(9.865)	(9.609)	(8.311)	(10.613)
CHANGE1	0.012	0.013	0.018	0.019	0.000	0.000	0.001	0.020	0.001	1.05
CHANGE1	(0.190)	(0.202)	(0.278)	(0.292)	(0.616)	(0.697)	(0.714)	(0.306)	(0.767)
TENURE1	−0.036***	−0.033***	−0.032***	−0.032***	−0.000***	−0.000***	−0.000***	−0.022***	−0.000***	3.31
TENURE1	(−11.490)	(−10.719)	(−10.048)	(−9.996)	(−10.171)	(−9.787)	(−9.727)	(−7.446)	(−6.372)
CHANGE2	0.055	0.055	0.056	0.056	0.000	0.000	0.000	0.038	0.000	1.04
CHANGE2	(0.692)	(0.699)	(0.708)	(0.717)	(0.499)	(0.509)	(0.518)	(0.486)	(0.231)
TENURE2	−0.026***	−0.027***	−0.025***	−0.025***	−0.000***	−0.000***	−0.000***	−0.019***	−0.000***	4.67
TENURE2	(−5.202)	(−5.351)	(−4.846)	(−4.799)	(−5.899)	(−5.403)	(−5.342)	(−3.844)	(−3.863)
BODAGE	0.007***	0.008***	0.008***	0.008***	0.000*	0.000*	0.000*	0.011***	0.000***	1.41
BODAGE	(2.619)	(2.907)	(2.903)	(2.892)	(1.862)	(1.880)	(1.869)	(3.777)	(2.995)
BODSIZE	−0.000	−0.000	0.000	0.000	0.000*	0.000*	0.000*	0.001	0.000**	1.13
BODSIZE	(−0.071)	(−0.007)	(0.069)	(0.105)	(1.666)	(1.746)	(1.765)	(0.177)	(2.167)
CVBA	−0.257	−0.179	−0.097	−0.114	−0.001	0.001	0.000	−0.172	−0.001	1.21
CVBA	(−1.537)	(−1.089)	(−0.577)	(−0.668)	(−0.252)	(0.274)	(0.176)	(−1.055)	(−0.458)
LEVER	−0.206**	−0.210**	−0.210**	−0.210**	−0.007***	−0.007***	−0.007***	−0.217**	−0.007***	1.41
LEVER	(−2.263)	(−2.315)	(−2.309)	(−2.299)	(−6.505)	(−6.484)	(−6.472)	(−2.389)	(−6.591)
CapEx/TA	2.256***	2.259***	2.263***	2.262***	0.033***	0.033***	0.033***	2.263***	0.034***	1.13
CapEx/TA	(10.354)	(10.370)	(10.363)	(10.362)	(12.444)	(12.431)	(12.421)	(10.383)	(12.547)
FFIRM	0.068***	0.068***	0.069***	0.068***	0.001**	0.001**	0.001**	0.073***	0.001**	1.67
FFIRM	(2.831)	(2.809)	(2.876)	(2.781)	(2.206)	(2.267)	(2.196)	(3.050)	(2.273)
FIRMAGE	−0.001	−0.001	−0.001	−0.000	−0.000***	−0.000***	−0.000***	−0.000	−0.000***	1.70
FIRMAGE	(−0.230)	(−0.298)	(−0.226)	(−0.196)	(−4.696)	(−4.627)	(−4.625)	(−0.169)	(−4.116)
R&D	5.540***	5.530***	5.509***	5.509***	0.089***	0.089***	0.089***	5.525***	0.088***	1.74
R&D	(5.621)	(5.618)	(5.599)	(5.599)	(8.645)	(8.610)	(8.611)	(5.628)	(8.644)
SALEGR	0.161***	0.161***	0.160***	0.160***	0.003***	0.003***	0.003***	0.158***	0.003***	1.05
SALEGR	(5.933)	(5.933)	(5.915)	(5.918)	(8.658)	(8.645)	(8.649)	(5.743)	(8.392)
FSIZE	−0.655***	−0.654***	−0.655***	−0.655***	0.033***	0.033***	0.033***	−0.652***	0.033***	1.84
FSIZE	(−19.426)	(−19.402)	(−19.377)	(−19.374)	(96.826)	(96.651)	(96.647)	(−19.293)	(96.719)
BETA	−0.898***	−0.898***	−0.900***	−0.900***	−0.009***	−0.009***	−0.009***	−0.895***	−0.009***	1.30
BETA	(−7.670)	(−7.672)	(−7.708)	(−7.708)	(−5.494)	(−5.517)	(−5.518)	(−7.661)	(−5.491)
STOCKVOL	0.671***	0.671***	0.671***	0.671***	0.009***	0.009***	0.009***	0.671***	0.009***	1.80
STOCKVOL	(8.928)	(8.937)	(8.950)	(8.948)	(9.942)	(9.954)	(9.953)	(8.906)	(9.929)
CVMBA								−0.238	−0.002	1.17
CVMBA								(−1.458)	(−1.053)
MBSIZE								−0.060**	0.000	1.18
MBSIZE								(−2.100)	(0.678)
MBTENU								−0.050***	−0.001***	2.80
MBTENU								(−5.791)	(−6.004)
SBSIZE								0.032	−0.001**	1.34
SBSIZE								(1.214)	(−2.398)
Constant	16.795***	16.754***	16.766***	16.774***	2.407***	2.407***	2.407***	16.692***	2.407***
Constant	(22.801)	(22.757)	(22.702)	(22.744)	(316.319)	(315.410)	(315.486)	(23.055)	(321.595)
Industry	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Year	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Observations	37,200	37,200	37,200	37,200	37,200	37,200	37,200	37,200	37,200
Adjusted-R²	0.4162	0.4164	0.4165	0.4165	0.8903	0.8904	0.8904	0.4172	0.8905
Mean VIF	–	–	–	–	–	–	–	–	–	2.88

Note(s): Table 6 reports Chair-CEO age dissimilarity and firm value (Tobin’s Q & The Market-to-Book ratio). Regression (1), (2), (3), (4), and (8) report the results from the OLS regression of association between Chair-CEO Age dissimilarity and TOBINQ. Regression (5), (6), (7), and (9) report the results of the association between Chair-CEO age dissimilarity and alternative measures of firm performance (MKTBK). Column (10) reports the Variance Inflation Factor (VIF). t-statistics in parentheses. *p < 0.10, **p < 0.05, ***p < 0.01. Robust t-statistics (in parentheses) are based on standard errors clustered by industry and year. All the variables are defined in Appendix

Source(s): Authors’ own calculation

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