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

Table 8

Robustness test.

Variable	Changing the measurement of network centrality	Changing the sample size	Changing the sample size	Excluding the samples whose “director network centrality” is 0	Excluding the samples whose “director network centrality” is 0
Degree		0.0906		0.8733
		(2.13)		(1.89)
Betweenness			0.0113		0.0108
			(1.78)		(1.70)
Closeness	0.0043
	(1.80)
_Cons	0.1216	0.1251	0.1265	0.1244	0.1259
	(22.23)	(25.59)	(26.45)	(23.67)	(24.62)
Controls	Yes	Yes	Yes	Yes	Yes
Year	Yes	Yes	Yes	Yes	Yes
N	5900	5732	5732	5180	5180
r^2	0.0418	0.0433	0.0431	0.0424	0.0423

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