Case 1: Results discussion A researcher comes up with the results summarized in tables 2, 3, and 4. He needs your help in interpreting and discussing the results. Table 1 will help you in understanding the variables used in this study. 1. What is the research question of this study? 2. Discuss and interpret the results in tables 2, 3, and 4. (You may need to review some literature for ideal discussion). Table 1: Variables of the study Variable Abbreviation Measurement 1. Board characteristics (independent variables) CEO duality Duality Dummy variable takes value of 1 if the CEO is a board chair, otherwise 0. Board size B Size Number of directors on board. Board independence Independence Percentage of independent directors on board Gender diversity Gender Percentage of women directors on board. Academic Background Academic Percentage of board members with PhD qualification. Board meetings B Meetings Number of board meetings held during the year 2. Firm performance (dependent variable proxies) Return on Equity ROE Net income divided by total equity Return on Assets ROA Net income divided by total assets. Earnings per Share EPS Net Income divided by the number of shares outstanding. 3. Control variables Firm size F Size Logarithm of the firms total assets in US Dollars (firms data in Jordan Dinar is converted in USD using the official average exchange rate) Firm leverage Leverage Percentage of total liability to total assets 2 Table 3: Descriptive statistics for all variables Mean Median Maximum Minimum Std. Dev. Observations Leverage 0.44 0.39 0.98 0.01 0.28 141 Duality 0.19 0.00 1.00 0.00 0.39 141 B. Meetings 5.80 6.00 12.00 1.00 1.75 111 B. Size 8.77 9.00 15.00 5.00 2.20 141 Independence 0.92 1.00 1.00 0.22 0.12 141 Gender 0.05 0.00 0.43 0.00 0.10 141 F. Size 7.63 7.58 9.38 6.54 0.71 141 Academic 0.15 0.13 0.67 0.00 0.16 141 ROA 0.01 0.02 0.26 -0.32 0.08 141 EPS 0.11 0.06 1.22 -0.40 0.23 141 ROE 0.01 0.04 0.44 -2.63 0.26 141 Table 4: Correlation Matrix between independent variables Leverag e CEO Duality B. Meetings B. Size Independen ce Gende r F. Size Academi c Leverage 1.00 CEO Duality 0.12 1.00 B. Meetings 0.01 0.12 1.00 B. Size 0.21 -0.18 0.06 1.00 Independen ce 0.18 -0.12 0.05 0.05 1.00 Gender 0.13 0.04 0.04 -0.30 -0.09 1.00 F. Size 0.54 0.07 0.13 0.46 0.26 -0.08 1.00 Academic -0.08 -0.05 0.01 -0.08 0.20 -0.18 0.07 1.00 3 Table 5: Estimation results for ROE, EPS and ROA as the dependent variables ROE EPS ROA Model 1 Model 2 Model 3 Duality 0.028*** -0.070*** -0.008 (2.65) (-2.89) (-1.14) B. Size -0.011*** -0.018*** -0.001 (-5.13) (-3.46) (-0.37) Independence -0.088** -0.005 -0.032 (-2.21) (-0.06) (-0.84) Gender 0.232*** 0.284** 0.224*** (4.62) (2.00) (4.86) Academic -0.069*** -0.397*** -0.048** (-3.00) (-5.77) (-2.24) F. SIZE 0.131*** 0.171*** 0.041*** (10.68) (7.32) (5.58) LEVERAGE -0.189*** -0.272*** -0.076*** (-6.85) (-4.96) (-4.98) B. MEETINGS - 0.023*** -0.001 - (4.39) (-0.32) C -0.731*** -1.000*** -0.226*** (-7.96) (-6.69) (-4.07) Sample size 141 111 111 R-Square 0.67 0.60 0.40 Adjusted R-Square 0.66 0.57 0.35 F-statistic 39.04*** 19.18*** 8.41*** ***, **, * indicate significance at 1%, 5%, and 10% respectively. Numbers in parenthesis are t-statistics. Panel data is used for the estimation of the following model: Performanceit = B0 +B1(Duality)it+B2(B Size)it+ B3(Independence)it+ B4(Gender)it + B5(Academic)it + B6(B meetings)it +B7(F Size)it +B8(Leverage)it + ei