Director Networks and Cost of Equity Capital: Based on “Busy Director Hypothesis” Analysis

Table 3

Correlation coefficient matrix.

	RE	Degree	Betweenness	Top1	It	Roe	Grow	Tat	Lev	Inpe	R&D	Dual
RE	1.0000	0.0444	0.0465	0.0176	0.1150	0.0541	0.0173	0.1202	0.1471	−0.1895	−0.1906	−0.0543
Degree	0.0341	1.0000	0.9058	−0.0113	0.0111	0.0118	−0.0173	0.0315	0.0493	−0.0132	−0.0503	−0.0852
Betweenness	0.0298	0.8656	1.0000	−0.0253	0.0066	0.0174	0.0051	0.0160	0.0530	−0.0111	−0.0371	−0.0705
Top1	0.0318	0.0010	0.0064	1.0000	0.0537	0.1129	−0.0555	0.0885	−0.0344	−0.1317	−0.1702	−0.0247
It	−0.0173	0.0587	0.0356	−0.0111	1.0000	0.1114	0.0643	0.4469	0.0414	−0.1510	−0.2316	−0.0558
Roe	0.0484	−0.0067	0.0054	0.0467	−0.0025	1.0000	0.3009	0.3018	−0.3009	−0.6277	−0.0126	0.0350
Grow	0.0080	0.0197	0.0294	0.0044	−0.0015	0.0222	1.0000	0.1106	−0.0346	−0.1269	0.0375	0.0679
Tat	0.0687	0.0296	0.0252	0.0635	−0.0113	0.1133	0.0257	1.0000	0.0617	−0.2278	−0.2726	−0.0489
Lev	0.0520	0.0155	0.0058	−0.0076	−0.0051	−0.0700	0.0438	−0.0001	1.0000	0.1292	−0.3126	−0.0912
Inpe	−0.1421	−0.0057	−0.0070	−0.1323	−0.0034	−0.2764	−0.0050	−0.1594	0.1671	1.0000	0.1867	0.0492
R&D	−0.1484	−0.0136	−0.0001	−0.1474	0.0655	−0.0284	0.0384	−0.2317	−0.0726	0.1578	1.0000	0.1666
Dual	−0.0616	−0.0746	−0.0529	−0.0320	−0.0065	0.0133	−0.0013	−0.0532	−0.0472	0.0399	0.1201	1.0000

Note: the symbols , , and mean significant at the statistical level of 1%, 5%, and 10%, respectively.