臺大管理論叢 NTU Management Review VOL.30 NO.2

Asymmetric Valuation Adjustments in Accumulated Other Comprehensive Income 164 6.5 CEO Duality for Agency Costs Primary tests of H3 assert that ethics would mitigate agency costs and deter the degree of asymmetric OCI adjustments. Table 4 has reported results that use KLD data to measure ethics. In this subsection, we further use CEO duality, Dual i,t , from Execucomp to measure agency costs. Dual i,t is an indicator variable that equals one if the executive of firm i also serves as the chairperson of that firm during the fiscal year of t , and zero otherwise. We extend the coefficients on the terms, and of Eq. (3), in the following equations: . (9) and . (10) Substituting Eq. (9) and Eq. (10) into Eq. (3), we obtain the following regression model (i.e., Eq. (11)) for additional tests of H3: , (11)