The last two explanatory variables are control variables, while the remaining variables are the corporate governance variables that we discussed in Section VA. As discussed in Section II, the signs of most of these variables are empirical issues, so we use the observed signs to interpret our results. The top section of Table 7 shows estimates of four variants of equation (6) for the full sample. The first two columns show estimates of models in which we include the proportion of independent directors on the board (PID) and the presence of an independent director with financial expertise (IDFE), together with other governance and control variables. The third and.
