Table 4 Change in audit report lag Panel...

Table 4

Change in audit report lag

Panel A
	Observations	Mean	Median	Std. Dev	Min	Max
ΔAudit report lag	919	12.64	4	29.00	−225	256

Panel A
ΔAudit report lag	919	12.64	4	29.00	−225	256

Panel B
	ΔAudit	ΔAudit	ΔAudit	ΔAudit	ΔAudit	ΔAudit
	Report lag	Report lag	Report lag	Report lag	Report lag	Report lag
Big N	−8.26**					−8.08*
Big N	(−2.33)					(−1.97)
Industry specialist		−3.83**				−2.54
Industry specialist		(−2.42)				(−1.42)
Auditor diversity			−3.50			11.67
Auditor diversity			(−0.40)			(1.14)
Auditor distance				0.17		0.05
Auditor distance				(0.30)		(0.09)
New auditor					10.06*	9.19*
New auditor					(1.91)	(1.78)
Wuhan distance	−4.84***	−4.90***	−4.84***	−4.97***	−5.04***	−5.07***
Wuhan distance	(−4.58)	(−4.63)	(−4.75)	(−4.14)	(−4.86)	(−4.34)
China HQ	1.85	1.42	1.20	0.26	1.01	1.46
China HQ	(0.88)	(0.68)	(0.56)	(0.07)	(0.48)	(0.42)
Main board	−3.33	−4.51	−4.59	−4.49	−4.25	−2.88
Main board	(−0.84)	(−1.12)	(−1.14)	(−1.11)	(−1.06)	(−0.79)
Total assets	0.05	0.28	0.33	0.38	0.44	0.21
Total assets	(0.05)	(0.29)	(0.33)	(0.40)	(0.48)	(0.23)
Asset turnover	−0.16	−0.74	−0.73	−0.67	−0.47	0.16
Asset turnover	(−0.09)	(−0.44)	(−0.42)	(−0.40)	(−0.29)	(0.09)
Inventory	−17.78***	−19.14***	−19.20***	−19.39***	−18.62***	−17.57***
Inventory	(−3.35)	(−4.05)	(−4.03)	(−4.12)	(−4.03)	(−3.35)
Receivables	10.33**	10.12*	10.43**	10.45*	10.65**	10.44**
Receivables	(2.03)	(1.99)	(2.03)	(1.99)	(2.05)	(2.01)
Leverage	12.51*	12.43*	12.50*	12.55*	11.30*	11.54*
Leverage	(1.89)	(1.93)	(1.97)	(1.96)	(1.69)	(1.68)
Cash	−22.48***	−24.47***	−24.41***	−24.72***	−24.17***	−22.92***
Cash	(−3.66)	(−3.89)	(−3.65)	(−4.00)	(−3.98)	(−3.61)
ZSCORE	0.26	0.25	0.25	0.24	0.17	0.19
ZSCORE	(0.89)	(0.88)	(0.89)	(0.87)	(0.61)	(0.65)
ROA	−13.60**	−16.33**	−16.45***	−16.71***	−15.10**	−12.72**
ROA	(−2.07)	(−2.64)	(−2.68)	(−2.69)	(−2.45)	(−2.01)
Loss	5.48**	6.48**	6.36**	6.45**	6.60***	5.97**
Loss	(2.27)	(2.66)	(2.61)	(2.64)	(2.82)	(2.62)
log(audit fees)	0.65	−0.87	−1.43	−1.71	−1.35	0.60
log(audit fees)	(0.26)	(−0.43)	(−0.78)	(−0.89)	(−0.72)	(0.26)
Constant	41.09***	48.07***	51.39***	52.14***	48.37***	36.48***
Constant	(3.16)	(3.93)	(4.19)	(4.11)	(4.20)	(2.72)
Industry FE	YES	YES	YES	YES	YES	YES
R-squared	0.110	0.101	0.098	0.098	0.107	0.119
Observations	919	919	919	919	919	919

Panel B
	ΔAudit	ΔAudit	ΔAudit	ΔAudit	ΔAudit	ΔAudit
	Report lag	Report lag	Report lag	Report lag	Report lag	Report lag
Big N	−8.26**					−8.08*
Big N	(−2.33)					(−1.97)
Industry specialist		−3.83**				−2.54
Industry specialist		(−2.42)				(−1.42)
Auditor diversity			−3.50			11.67
Auditor diversity			(−0.40)			(1.14)
Auditor distance				0.17		0.05
Auditor distance				(0.30)		(0.09)
New auditor					10.06*	9.19*
New auditor					(1.91)	(1.78)
Wuhan distance	−4.84***	−4.90***	−4.84***	−4.97***	−5.04***	−5.07***
Wuhan distance	(−4.58)	(−4.63)	(−4.75)	(−4.14)	(−4.86)	(−4.34)
China HQ	1.85	1.42	1.20	0.26	1.01	1.46
China HQ	(0.88)	(0.68)	(0.56)	(0.07)	(0.48)	(0.42)
Main board	−3.33	−4.51	−4.59	−4.49	−4.25	−2.88
Main board	(−0.84)	(−1.12)	(−1.14)	(−1.11)	(−1.06)	(−0.79)
Total assets	0.05	0.28	0.33	0.38	0.44	0.21
Total assets	(0.05)	(0.29)	(0.33)	(0.40)	(0.48)	(0.23)
Asset turnover	−0.16	−0.74	−0.73	−0.67	−0.47	0.16
Asset turnover	(−0.09)	(−0.44)	(−0.42)	(−0.40)	(−0.29)	(0.09)
Inventory	−17.78***	−19.14***	−19.20***	−19.39***	−18.62***	−17.57***
Inventory	(−3.35)	(−4.05)	(−4.03)	(−4.12)	(−4.03)	(−3.35)
Receivables	10.33**	10.12*	10.43**	10.45*	10.65**	10.44**
Receivables	(2.03)	(1.99)	(2.03)	(1.99)	(2.05)	(2.01)
Leverage	12.51*	12.43*	12.50*	12.55*	11.30*	11.54*
Leverage	(1.89)	(1.93)	(1.97)	(1.96)	(1.69)	(1.68)
Cash	−22.48***	−24.47***	−24.41***	−24.72***	−24.17***	−22.92***
Cash	(−3.66)	(−3.89)	(−3.65)	(−4.00)	(−3.98)	(−3.61)
ZSCORE	0.26	0.25	0.25	0.24	0.17	0.19
ZSCORE	(0.89)	(0.88)	(0.89)	(0.87)	(0.61)	(0.65)
ROA	−13.60**	−16.33**	−16.45***	−16.71***	−15.10**	−12.72**
ROA	(−2.07)	(−2.64)	(−2.68)	(−2.69)	(−2.45)	(−2.01)
Loss	5.48**	6.48**	6.36**	6.45**	6.60***	5.97**
Loss	(2.27)	(2.66)	(2.61)	(2.64)	(2.82)	(2.62)
log(audit fees)	0.65	−0.87	−1.43	−1.71	−1.35	0.60
log(audit fees)	(0.26)	(−0.43)	(−0.78)	(−0.89)	(−0.72)	(0.26)
Constant	41.09***	48.07***	51.39***	52.14***	48.37***	36.48***
Constant	(3.16)	(3.93)	(4.19)	(4.11)	(4.20)	(2.72)
Industry FE	YES	YES	YES	YES	YES	YES
R-squared	0.110	0.101	0.098	0.098	0.107	0.119
Observations	919	919	919	919	919	919

Note(s): Table 4 reports the descriptive statistics for the change in audit report lag and the association between the change in audit report lag and the auditor resilience characteristics. Panel A reports descriptive statistics for the change in audit report lag (ΔAudit Report Lag). Panel B reports the result for an ordinary least squares estimation with the change in audit report lag as the dependent variable. T-statistics, reported in the parentheses, are based on standard errors clustered at the industry level (2-digit SIC). Variables are defined in Appendix 2. ***, ** and * indicate statistical significance at the 1%, 5% and 10% levels, respectively

Source(s): Table created by author

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