Thrivent's consistent generation of strong operating cash flow, very large portfolio of marketable securities with a strong market-to-book value
ratio and strong policyholder persistency partially mitigate disintermediation risk.
Our empirical models include the market-to-book value
of the firm as a measure of growth opportunities to account for this effect (Park and Shin, 2004; Boyer and Hanon, 2012).
Table 2: Descriptive statistics The name of variable Minimum Maximum Pseudo Institutional investors 0 1 1 Ratio of non-bound managers 0.28 0.8 - Auditor type (public and private) 0 1 0 Float shares percent 0.05 0.9 - Ownership (private-public) 0 1 1 The company of major or minor 0 1 1 CEO's duality 0 1 1 Firm size 3.56 33.43 - Financial leverage 0.04 1.68 - Market-to-book value
-1.14 8.97 The name of variable Mean SD Institutional investors - 0.3634 Ratio of non-bound managers 0.615 0.1171 Auditor type (public and private) - 0.4567 Float shares percent 0.344 0.1492 Ownership (private-public) - 0.4303 The company of major or minor - 0.4666 CEO's duality - 0.1429 Firm size 27.36 2.0942 Financial leverage 0.6206 0.1854 Market-to-book value
1.7603 1.1527 3.2.
We next calculate the market-to-book value
of equity to proxy the ex ante growth prospects of the firm.
The number of floated shares may have affected the market-to-book value
Net sales, total assets, longterm debt, and conformance to the DJSI are regressed against the four measures of the firm's financial performance (gross profit margin, net operating profit, profit margin, and return on assets) and one measure of market value (market-to-book value
of stock) for the purpose of determining the marginal effect of these operational and social responsibility characteristics.
For example, the market-to-book value
of another of the 11 firms that we analysed in depth, Daily Mail and General Trust, hit a peak at the time of its entry to the FTSE 100, suggesting that the increase in the company's market value resulted from the jump in demand for shares in a FTSE 100 member.
A company is less likely to expense when its growth potential is greater as measured by its market-to-book value
and R&D intensity.
And indeed, until the early 1980s, the market-to-book value
ratio of the S&P 500 companies was about 1-to-1.
The survey sample was representative of the sample frame with respect to market-to-book value
, product market diversification, internationalization, and sources of board independence--the portion of the board appointed after the CEO, outside director ownership, and institutional ownership (these measures are discussed below)--p-values ranged from .156 to .828.