# Disentangling Director Attributes: Human Capital versus Social Capital of Directors
## 4 Empirical Findings
Specifically, we observe statistically significant increases of 0.81 between the first and second quartiles, 0.40 between the second and third quartiles, and 0.99 between the third and fourth quartiles. Overall, we observe a 2.19 increase in _HCI_ between the high and low quartile. This indicates a strong relationship between an increase in social capital and an increase in human capital. To put the results into perspective, the difference of 2.19 between the high and low quartile is \begin{table}
\begin{tabular}{c c c c c c} \hline \hline
**Variable** & _AGG_ **p75 = 1** & _AGG_ **p25 = 1** & **Mean Difference** & **T/Z Stat** & \\  & **(High)** & **(Low)** & **(High–Low)** & & \\ \hline Observations & 3052 & 3054 & & & \\ Female & 10\% & 7\% & 3\% & (3.50) & *** \\ Age & 56.9 & 55.6 & 1.3 & (4.25) & *** \\ New Zealand & 72\% & 74\% & \(-\)2\% & (\(-\)1.74) & * \\ Undergraduate & 39\% & 34\% & 5\% & (4.06) & *** \\ Postgraduate & 36\% & 32\% & 4\% & (3.85) & *** \\ No Degree & 24\% & 34\% & \(-\)10\% & (\(-\)8.31) & *** \\ Director Experience & 7.04 & 5.60 & 1.44 & (9.43) & *** \\ Directorships & 1.72 & 1.02 & 0.70 & (41.74) & *** \\ NZX10 & 20\% & 0\% & 20\% & (27.65) & *** \\ NZX50 & 65\% & 11\% & 54\% & (45.14) & *** \\ Prior CEO Experience & 43\% & 38\% & 5\% & (4.24) & *** \\ Current CEO (listed) & 10\% & 16\% & \(-\)6\% & (\(-\)6.40) & *** \\ Current CEO (non-listed) & 9\% & 14\% & \(-\)5\% & (\(-\)5.74) & *** \\ International Experience & 45\% & 44\% & 1\% & (0.54) & \(-\) \\ M\&A Experience & 3.52 & 0.74 & 2.78 & (21.01) & *** \\ Industry Experience & 1.62 & 1.34 & 0.28 & (10.47) & *** \\ \hline \hline
**Professional Expertise** & & & & & \\ \hline Accountant & 21\% & 16\% & 5\% & (5.35) & *** \\ Banker & 14\% & 16\% & \(-\)2\% & (\(-\)2.41) & ** \\ Consultant & 7\% & 11\% & \(-\)4\% & (\(-\)5.20) & *** \\ Financial Expert & 28\% & 20\% & 8\% & (7.15) & *** \\ General Executive & 30\% & 34\% & \(-\)4\% & (\(-\)4.02) & *** \\ Lawyer & 8\% & 8\% & 0\% & (\(-\)1.22) & ** \\ Prof Director & 21\% & 6\% & 15\% & (17.23) & *** \\ \hline \hline \end{tabular} This table reports the human capital and other attributes for directors in the top 25% connectivity quantile versus directors in the bottom 25% connectivity quantile. Each year, directors are sorted into four quantiles based on their measure of _AGG_. Directors in the top 25 th percentile are in the high group and directors in the bottom 25 th percentile are in the low group. The second to last column of the table reports the average differences in the attributes between the high versus two connected directors, followed by the statistical significance based on a two-tailed two-sample t/z-test with unequal variances. _AGG_ is the PCA connectivity factor. Female is a dummy variable that equals 1 if a director is a woman. Age is the age of the director in the sample year. New Zealand is a dummy if the director was domiciled in New Zealand, Undergraduate, Postgraduate and No Degree are dummy variables based on the highest qualification of a director. Director experience is the cumulative number of years of director experience a director has, Directorships is the number of current directorships a director has. NZX10 and NZX50 are dummy variables if the firms a director sits on are currently part of the NZX 10 or NZX 50 market indices. Prior CEO, Current CEO (listed) and Current CEO (unlisted) are dummy variables based on a director’s past or current experience as a CEO. International Experience is a dummy variable if a director has worked abroad. M\&A Experience measures the number of deals a director has experienced as a director. Professional Expertise are a series of dummy variables if the director has held or holds a position in the relevant profession. More detail regarding the variable definition can be found in Appendix A. *_p_ < 0.10, *_p_ < 0.05, ***_p_ < 0.01.  
\end{table} 
Table 3: Attributes of high-connected versus low-connected directors. nearly a full standard deviation of the _HCI_.