Two new variables, the market value of the firm (a measure of firm size, in millions of dollars) and stock return (a measure of firm performance, in percentage points), are added to the regression:...


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Two new variables, the market value of the firm (a measure of firm size, in millions of dollars) and<br>stock return (a measure of firm performance, in percentage points), are added to the regression:<br>In(Earnings)<br>3.86<br>(0.03)<br>0.28 Female + 0.37 In(Market Value) + 0.004 Return,<br>(0.04)<br>(0.004)<br>(0.003)<br>where n =<br>- 46, 670 and R²<br>0.345.<br>ССО 321<br>Page 3 of 3<br>(d) Interpret the estimated value of the coefficient on In(Market Value).<br>(e) Are large firms more likely than small firms to have female top executives? Explain.<br>

Extracted text: Two new variables, the market value of the firm (a measure of firm size, in millions of dollars) and stock return (a measure of firm performance, in percentage points), are added to the regression: In(Earnings) 3.86 (0.03) 0.28 Female + 0.37 In(Market Value) + 0.004 Return, (0.04) (0.004) (0.003) where n = - 46, 670 and R² 0.345. ССО 321 Page 3 of 3 (d) Interpret the estimated value of the coefficient on In(Market Value). (e) Are large firms more likely than small firms to have female top executives? Explain.

Jun 08, 2022
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