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

Table 6

Regression results: director networks, equity concentration, and cost of equity capital.

Variable	All the samples		Samples of state-owned listed companies		Samples of non-state-owned listed companies
	(1)	(2)	(3)	(4)	(5)	(6)
C	0.1191 (21.0757)	0.1236 (24.7555)	0.1367 (11.8697)	0.1448 (14.7535)	0.1161 (16.6141)	0.1182 (18.5076)
Top1	0.0002 (1.5197)	0.0001 (0.8596)	0.0004 (2.0263)	0.0002 (1.1684)	−0.0001 (−0.9249)	−0.0001 (−1.1646)
Degree	0.3171 (2.8424)		0.4008 (1.8095)		0.1950 (1.4752)
Betweenness		0.0431 (2.6629)		0.0399 (1.2026)		0.0360 (1.9302)
Top1∗Degree	−0.0062 (−2.1697)		−0.0116 (−2.2894)		−0.0010 (−0.2779)
Top1∗Betweenness		−0.0008 (−2.0405)		−0.0011 (−1.5172)		−0.0004 (−0.8732)
It	−0.0001 (−0.9520)	−0.0001 (−0.8803)	−0.0001 (−0.0653)	−0.0001 (−0.0792)	−0.0001 (−1.1777)	−0.0001 (−1.0700)
Roe	0.0071 (1.0521)	0.0068 (1.0068)	0.0138 (1.7218)	0.0132 (1.6500)	−0.0252 (−1.4572)	−0.0254 (−1.4695)
Grow	0.0001 (0.1674)	0.0001 (0.1548)	−0.0001 (−0.1527)	−0.0001 (−0.1417)	0.0001 (0.5548)	0.0001 (0.5352)
Tat	0.0023 (1.2993)	0.0023 (1.2944)	0.0010 (0.3187)	0.0010 (0.3103)	0.0040 (1.9488)	0.0040 (1.9548)
Lev	0.0017 (4.8788)	0.0017 (4.9148)	0.0028 (3.8680)	0.0029 (3.9083)	0.0012 (2.9573)	0.0012 (2.9829)
Inpe	−0.0080 (−9.2415)	−0.0081 (−9.2670)	−0.0125 (−8.0697)	−0.0127 (−8.1361)	−0.0060 (−5.1877)	−0.0060 (−5.2066)
R&D	−0.0016 (−8.5441)	−0.0016 (−8.5601)	−0.0028 (−5.9386)	−0.0028 (−5.9045)	−0.0012 (−6.1108)	−0.0012 (−6.1355)
Dual	−0.0058 (−2.9739)	−0.0058 (−3.0037)	−0.0016 (−0.2948)	−0.0015 (−0.2692)	−0.0037 (−1.8059)	−0.0039 (−1.8745)
R^2	0.0443	0.0441	0.0702	0.0686	0.0306	0.0303
F	24.8029	24.6901	13.5414	13.2016	11.1956	11.0916
DW	2.0192	2.0193	2.0215	2.0217	1.8969	1.8973
N	5900	5900	1984	1984	3916	3916

Note: the symbols , , and mean significant at the statistical level of 1%, 5%, and 10%, respectively. The bracket value is the T value.