Table A2.
Correlation matrix.
| Firm efficiency | Managerial ability | Historical ROA | Historical returns | CEO compensation | CEO tenure | CEO media | Size | ROA | |
|---|---|---|---|---|---|---|---|---|---|
| Firm efficiency | 0.6830 | 0.3398 | 0.1502 | 0.2507 | 0.0103 | 0.0186 | 0.5150 | 0.3573 | |
| Managerial ability | 0.6511 | 0.1866 | 0.0793 | 0.2614 | −0.0444 | 0.0958 | 0.7313 | 0.1163 | |
| Historical ROA | 0.0817 | 0.0429 | 0.2173 | 0.2782 | 0.1758 | −0.0467 | 0.1694 | 0.6167 | |
| Historical Returns | 0.1234 | 0.0395 | 0.0777 | 0.1294 | 0.0452 | 0.0536 | 0.0595 | 0.2238 | |
| CEO Compensation | 0.1905 | 0.0877 | 0.1361 | 0.1286 | 0.1055 | 0.0840 | 0.3630 | 0.2395 | |
| CEO Tenure | 0.0011 | −0.0112 | 0.1100 | 0.0434 | 0.1412 | −0.0632 | −0.0387 | 0.1687 | |
| CEO Media | 0.0131 | −0.0106 | −0.0860 | 0.0452 | 0.1655 | −0.0883 | 0.1361 | −0.0669 | |
| Size | 0.3065 | 0.1007 | 0.0828 | 0.0703 | 0.3343 | −0.0545 | 0.2907 | 0.0675 | |
| ROA | 0.0960 | 0.0393 | 0.4254 | 0.0446 | 0.1147 | 0.0569 | −0.0364 | 0.0639 |
Notes. This table reports correlation analysis. The upper diagonal reports Spearman correlation coefficients, whereas lower diagonal report Pearson correlation coefficients. Firm efficiency is measured using DEA. Managerial ability is the residuals from Eq. (2). Historical Returns is five-year historical industry adjusted stock returns. Historical ROA is five year industry-adjusted return on assets (income before interest and taxes scaled by total assets). CEO Compensation refers to natural log of CEO compensation. CEO Tenure is natural log of the CEO tenure. CEO Media indicate natural log of CEO media mentions. Size is natural log of total assets. ROA represents income before interest and taxes scaled by total assets. The correlation analysis are carried out using annual data for the year 2019. Bold values indicate significance at the 5% and 10% levels.