| Outside Succession Regressions | ||||||
| Regression Number | ||||||
| Explanatory Variable | (1) | (2) | (3) | (4) | (5) | |
| Constant | -2.4509** | -2.4411** | -2.6301** | -2.2733** | -2.2011** | |
| (0.000) | (0.000) | (0.000) | (0.000) | (0.000) | ||
| FGEDUM - 1 if the firm is in SIC 48, 49, | -0.0158 | |||||
| or 60-69a | (0.982) | |||||
| Natural log of employment | -0.0673 | -0.0868 | -0.0983 | -0.1012 | -0.1042 | |
| (0.184) | (0.141) | (0.153) | (0.125) | (0.117) | ||
| ROA - Annual EBIT/assets less the | -4.3381** | -4.3279** | -3.4357** | -3.6026** | -3.5582** | |
| 2-digit SIC industry average | (0.000) | (0.000) | (0.003) | (0.001) | (0.001) | |
| RET - Total stock return during the 12 | -0.2264 | -0.1749 | -1.7498 | -2.2767 | -2.1053 | |
| months preceeding the announcement | (0.845) | (0.880) | (0.309) | (0.189) | (0.222) | |
| less the 2-digit SIC industry average | ||||||
| RET (Lag 1) | -2.4491* | -2.3821* | -2.0203 | -1.9345 | -2.0059 | |
| (0.066) | (0.078) | (0.271) | (0.278) | (0.271) | ||
| CEO Ownership (% of total shares) | -9.2310 | -9.3521 | ||||
| (0.653) | (0.640) | |||||
| OUTDIR - Proportion of directors | 0.8928** | 1.0168** | 1.2606* | |||
| who are not officers of the firm | (0.030) | (0.040) | (0.087) | |||
| OUTDIR1 - Proportion of directors who | 0.9630** | 0.9041* | ||||
| have no business or personal relationship | (0.037) | (0.050) | ||||
| with the firm or its officersb | ||||||
| OUTDIR*FGEDUM | -0.1191 | |||||
| (0.898) | ||||||
| N (successions) | 713 | 713 | 414 | 414 | 414 | |
| N (outsiders) | 88 | 88 | 50 | 50 | 50 | |
| N (firm years) | 5455 | 5455 | 3191 | 3191 | 3191 | |
| Chi-square (binomial probit) | 61.75 | 62.62 | 38.56 | 35.94 | 37.38 | |
| P-value | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Log-likelihood (bivariate probit) | -2192.5 | -2192.2 | -1266.8 | -1267.8 | -1267.0 | |