Table 1.
List of variables with definitions
Source: Authors’ compilation. *Explained in the methodology section
| Variable | Definition / Measurement |
|---|---|
| Corporate Governance Variables | |
| B. Size | Board size, indicating total number of directors on the board of a company |
| CEO Duality | = 1 when same person occupies the positions of CEO and chairman of the board, and 0 otherwise |
| B. Indep | Board independence, indicating percentage of independent directors on the board of a company |
| Prom. Share | % of equity shares held by promoters |
| Gender Diversity Measures | |
| PWD | Percentage of women directors. Number of women directors on a company’s board to total number of directors on that board, multiplied by 100 |
| IWD | Intensity of women directors (WDs). Dummy variable. = 1 when % of WDs is greater than the median % of WDs of the sample firms; 0 otherwise |
| Firm Performance Indicators | |
| ROA | EBIT divided by total assets multiplied by 100 |
| ROE | Return on Equity. Calculated as profit after tax divided by shareholder’s fund multiplied by 100 |
| Tobin’s Q | |
| EVACE* | Calculated as summation of market capitalization divided by total assets.Economic Value Added (EVA) as a percentage of Capital Employed |
| Control Variables | |
| Firm Size | Natural logarithm of total assets of a company |
| Capex | Total capital expenditure of the company scaled by its total sales |
| Leverage | Long term debt divided by total assets. This variable indicates the degree of financial leverage |
| Firm Age | Age of a firm since its incorporation |
| MB Ratio | The ratio of market value of equity of a company over its book value of assets |
| Year dummy | This variable is a proxy for growth opportunity of the firm. = 1 for FY years 2020 and 2021, and 0 otherwise |