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

Table 7

Regression results: director networks type and cost of equity capital.

Variable	Network of independent directors				Network of nonindependent directors
	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
C	0.0897 (63.5797)	0.1120 (28.8999)	0.0905 (85.3185)	0.1205 (29.3961)	0.0904 (83.3831)	0.1205 (29.3052)	0.0914 (98.5829)	0.1212 (29.8469)
Degree	0.0533 (2.1596)	0.0500 (2.0500)			0.1492 (2.5591)	0.1074 (1.8612)
Betweenness			0.0112 (2.6729)	0.0083 (2.0004)			0.0124 (2.6729)	0.0097 (1.7531)
It		0.0001 (1.2125)		0.0001 (1.2144)		0.0001 (1.2306)		0.0001 (1.2249)
Roe		0.0024 (0.3491)		0.0025 (0.3628)		0.0029 (0.4184)		0.0025 (0.3858)
Grow		−0.0001 (−0.0641)		−0.0001 (−0.0851)		−0.0001 (−0.1193)		−0.0001 (−0.1410)
Tat		0.0048 (2.6375)		0.0049 (2.6872)		0.0049 (2.6743)		0.0050 (2.7180)
Lev		0.0020 (5.3632)		0.0019 (5.3627)		0.0019 (5.3659)		0.0019 (5.3548)
Inpe		−0.0090 (−10.3391)		−0.0089 (−10.2152)		−0.0089 (−10.2183)		−0.0089 (−10.2382)
Dual		−0.0074 (−3.7582)		−0.0074 (−3.7675)		−0.0073 (−3.7267)		−0.0074 (−3.7829)
Adj.R^2	0.0008	0.0303	0.0012	0.0303	0.0011	0.0302	0.0012	0.0301
F	4.6640	22.8607	7.1444	22.8348	6.5492	22.7656	7.1444	22.7153
DW	1.8778	1.8941	1.8783	1.8937	1.8842	1.8995	1.8783	1.9002
N	5861	5861	5861	5861	5861	5861	5861	5861

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