Table 1 The study variables
Variables | The type of the measure | Measurements |
|---|---|---|
Dependent variable | ||
Firm value | Tobin’s Q | Market value of equity + market value of liabilities/book value of equity + market value of liabilities |
Independent variables | ||
Political connections | Dummy variable | Dummy variable with values 0 and 1. A value of 1 is assigned when the board of directors includes a politically connected member and 0 otherwise |
Moderating variable | ||
Related party transactions | Dummy variable | Dummy variable with values 0 and 1. A value of 1 is assigned when the company has RPTs in financial statements and 0 otherwise |
Control variables | ||
Board characteristics | ||
  CEO gender | Percentage | It is measured by dividing the number of women on the board of directors by the number of members on the board |
  CEO duality | Dummy variable | Dummy variable with values 0 and 1. A value of 1 is assigned when the chairman and the chief executive officer are the same person and 0 otherwise |
  CEO expertise | Dummy variable | Dummy variable with values 0 and 1. A value of 1 is assigned when the board of directors includes members with financial expertise and 0 otherwise |
  Board size | Numeric value | It is measured by the number of directors on the board of directors |
Other control variables | ||
  Firm size | Numeric value | Natural logarithm of total assets |
  Audit quality | Dummy variable | Dummy variable with values 0 and 1. A value of 1 is assigned when the firm’s auditor is a Big 4 firm and 0 otherwise |
  Profitability | Financial ratio | Net income/total assets |
  Leverage | Financial ratio | Total liabilities/total assets |