Applying Meta-Frontier Approaches to Profitability Estimation: In Case of the Effects of Official Independent Directors

Table 2

Random boundary estimation of the first stage.

Variable	Company with official independent director (GOV) operating income logarithm ln (Y)		Company with no official independent director (GOV) operating income logarithm ln (Y)
	Coefficient value	Standard error	Coefficient value	Standard error
Constant term	2.534	0.306	−2.548	0.288
ln(L)	0.406	0.061	1.662	0.345
ln(K)	1.884	0.950	2.545	0.603
ln(L) × ln(K)	−2.571	0.551	0.450	0.961
Environment variables
Constant term	3.567	1.554	5.202	1.325
HHI	1.555	0.566	2.551	0.614
AGE	0.021	0.088	0.028	0.045
CITY	2.423	0.457	2.811	0.181
COASTAL	0.450	0.230	0.451	0.200
	0.088	0.022	0.022	0.008
	0.819	0.022	0.988	0.028
Log-likelihood	273.800		364.340
n	117		137

Data source: CSMAR database. Note: , , indicates statistical significance at the level of confidence of 1%, 5%, and 10%, respectively.