Table 6.
Second-Stage Fixed Effects OLS Estimates of Firm Performance: Three-Year ROA
| Model 1 | Model 2 | Model 3 | Model 4 | Model 5 | Model 6 | |
|---|---|---|---|---|---|---|
| Three-Year ROA | Three-Year ROA | Three-Year ROA | Three-Year ROA | Three-Year ROA | Three-Year ROA | |
| Inverse Mills ratio | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 |
| (0.043) | (0.064) | (0.052) | (0.070) | (0.081) | (0.066) | |
| CEO power | 0.00 | 0.01 | 0.00 | 0.01 | 0.01 | 0.00 |
| (0.400) | (0.294) | (0.671) | (0.270) | (0.255) | (0.619) | |
| Organizational complexity | −0.00 | −0.00 | −0.00 | 0.00 | −0.00 | 0.00 |
| (0.777) | (0.769) | (0.756) | (0.271) | (0.762) | (0.350) | |
| Board leadership demands | −0.00 | −0.00 | −0.00 | −0.00 | −0.00 | −0.00 |
| (0.367) | (0.404) | (0.389) | (0.393) | (0.817) | (0.748) | |
| TMT power | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| (0.109) | (0.267) | (0.295) | (0.043) | (0.189) | (0.047) | |
| Non-executive board chair t-1 | −0.05 | −0.04 | −0.04 | −0.04 | −0.04 | −0.04 |
| (0.080) | (0.150) | (0.126) | (0.166) | (0.182) | (0.159) | |
| CEO duality t-1 | −0.05 | −0.04 | −0.05 | −0.04 | −0.04 | −0.04 |
| (0.039) | (0.068) | (0.056) | (0.074) | (0.086) | (0.071) | |
| Insider CEO | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| (0.181) | (0.251) | (0.230) | (0.403) | (0.275) | (0.379) | |
| Chair ownership | −0.07 | −0.06 | −0.07 | −0.05 | −0.06 | −0.06 |
| (0.339) | (0.359) | (0.298) | (0.426) | (0.354) | (0.348) | |
| Chair's role tenure | −0.00 | −0.00 | −0.00 | −0.00 | −0.00 | −0.00 |
| (0.073) | (0.237) | (0.336) | (0.180) | (0.350) | (0.402) | |
| Chair's board tenure | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| (0.522) | (0.772) | (0.771) | (0.805) | (0.815) | (0.844) | |
| Board independence | −0.05 | −0.04 | −0.04 | −0.04 | −0.04 | −0.04 |
| (0.149) | (0.280) | (0.239) | (0.295) | (0.295) | (0.255) | |
| Lead independent director present | −0.01 | −0.01 | −0.01 | −0.01 | −0.01 | −0.01 |
| (0.221) | (0.218) | (0.230) | (0.194) | (0.203) | (0.197) | |
| R&D intensity | 0.17 | 0.18 | 0.18 | 0.18 | 0.18 | 0.18 |
| (0.095) | (0.091) | (0.086) | (0.085) | (0.090) | (0.078) | |
| Industry instability | −0.00 | 0.00 | −0.00 | 0.00 | −0.00 | 0.00 |
| (0.926) | (0.990) | (0.879) | (0.659) | (0.992) | (0.846) | |
| Executive board chair | 0.01 | 0.02 | 0.01 | 0.01 | 0.01 | |
| (0.029) | (0.003) | (0.038) | (0.027) | (0.002) | ||
| Executive Board Chair × CEO Power | 0.01 | 0.01 | ||||
| (0.091) | (0.046) | |||||
| Executive Board Chair × Organizational Complexity | −0.01 | −0.01 | ||||
| (0.003) | (0.009) | |||||
| Executive Board Chair × Board Leadership Demands | −0.01 | −0.01 | ||||
| (0.074) | (0.077) | |||||
| Constant | 0.07 | 0.05 | 0.05 | 0.06 | 0.05 | 0.06 |
| (0.047) | (0.093) | (0.090) | (0.078) | (0.087) | (0.071) | |
| Year dummies | Included | Included | Included | Included | Included | Included |
| Observations | 2,082 | 2,082 | 2,082 | 2,082 | 2,082 | 2,082 |
| R-squared | 0.08 | 0.08 | 0.08 | 0.09 | 0.08 | 0.09 |
| Δ R-squared (from base model) | N/A | 0.00 | 0.00 | 0.01 | 0.00 | 0.01 |
| Number of firms | 276 | 276 | 276 | 276 | 276 | 276 |
Note: Robust p values are in parentheses.