Non-family chair and corporate performance

Frontiers of Business Research in China

Table 11 Tests of alternative explanations

This table presents the regression results when we study the effect of a non-family chair after controlling for alternative explanations. In columns 1 to 5, we take the differences in management ability (e.g., investment efficiency) and the efforts that a chair makes (the number of firms controlled and the entrepreneurs’ age) into consideration. In columns 6 to 8, we estimate regressions with traditional factors (the divergence of control rights and cash flow rights and the liquidity concern) as additional explanatory variables. All regressions include year and industry dummies, but their coefficients are not reported for the sake of brevity. See the Appendix for detailed descriptions of the variables. The values in parentheses are standard errors that are robust to heteroskedasticity and clustered at the firm level. Asterisks denote statistical significance at the 1% (***), 5% (**) or 10% (*) level, respectively