Conider Hhe folloning ewtimadad mpuenion aqudtin to erplaim salanes of CeOs: Log (Salany) = 4.31 + 0•280 logGalas) + o.0174vee + o 00024 (0-22) (o 035) Coo0410) (0.000r n= 201; R* = 0-283 Salung= Salanyof CEO Saku. Firm's Frms quaual salu. Return on epuity in pu centage foro. roe = Re famn of fivms ostank in pocentage form. Test the mull azaimst He ltr heh that it hawa YoS = hypethais Hhat firms salu has no pari five effef. state on

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O Canider Hhe following etimatad veqmenion equdin to explain he
salanes
of CEOs:
Log (salang) = 4.32 + 0•280 logGales) +:
(0-22) (o 035)
+ 0.0174roe t o·024 ros
Coo0 410)
n= 209; R* = 0:283
| Sallang = Salany of CEO
Salu . Firmis qumul salu.
%3D
e puity in pocentage fone.
Re turn
Re fomn of fivms stoak in porcentage form.
Test, the mul hypdthais Hhat fimew sole, has
Yoe
%3D
on
roS
effet. on salag
paifiva effaut. state Hhe
and al femutine hyp• tng de cirion mla" and camy
no
azainst He, al leu matine that if hw 9
out the fert at He 'one
percedt significance lerl.
In fepat the waffiniut
O Fust the mll huyppethuis that neturn
ly of sales.
on
puity hay no affest
poitive effert.
State Hhe null and al fernuntine hypothenis, derion wole, and
sut ti tert at the tan pevent ('io7.) <igmificance leval.
O Finuly, beet the mull ypthuis that, vathur on stak hu no
on
salang against "Hhe alfemative that it has .
on
cawy
salang againt, the al tehnahie Hhat it has a
State Hhe mnl and 'afemating hyp fhui, fainon
priltive, offet.
on
out the test at the one
prant sighificem
cawy
Wauld
you
milate ve fun on stack in the frinud mo d
boplaining "cEo salony? Explan.
Transcribed Image Text:O Canider Hhe following etimatad veqmenion equdin to explain he salanes of CEOs: Log (salang) = 4.32 + 0•280 logGales) +: (0-22) (o 035) + 0.0174roe t o·024 ros Coo0 410) n= 209; R* = 0:283 | Sallang = Salany of CEO Salu . Firmis qumul salu. %3D e puity in pocentage fone. Re turn Re fomn of fivms stoak in porcentage form. Test, the mul hypdthais Hhat fimew sole, has Yoe %3D on roS effet. on salag paifiva effaut. state Hhe and al femutine hyp• tng de cirion mla" and camy no azainst He, al leu matine that if hw 9 out the fert at He 'one percedt significance lerl. In fepat the waffiniut O Fust the mll huyppethuis that neturn ly of sales. on puity hay no affest poitive effert. State Hhe null and al fernuntine hypothenis, derion wole, and sut ti tert at the tan pevent ('io7.) <igmificance leval. O Finuly, beet the mull ypthuis that, vathur on stak hu no on salang against "Hhe alfemative that it has . on cawy salang againt, the al tehnahie Hhat it has a State Hhe mnl and 'afemating hyp fhui, fainon priltive, offet. on out the test at the one prant sighificem cawy Wauld you milate ve fun on stack in the frinud mo d boplaining "cEo salony? Explan.
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