Table 5 Main findings Period: 2018–2019...

Table 5

Main findings

Period: 2018–2019
Panel a1)
Obs	Mean abnormal accruals	St. Dev.	Min	Max	R-squared	Adj R-squared
28,808	−0.07	1.14	−151.64	106.19	0.91	0.91

Period: 2018–2019
28,808	−0.07	1.14	−151.64	106.19	0.91	0.91

Panel a2)
	Coef	Std. Err	t	P>\|t\|
$\frac{1}{A_{i t - 1}}$	1587.40	7.83	202.61	0.00
$\frac{{∆ R E V}_{i t} - {∆ R E C}_{i t}}{A_{i t - 1}}$	−0.004	0.0002	−21.06	0.00
$\frac{{P P E}_{i t}}{A_{i t - 1}}$	−0.14	0.001	−130.94	0.00
$\frac{{B M}_{i t}}{A_{i t - 1}}$	0.17	0.001	164.45	0.00
$\frac{{C F O}_{i t}}{A_{i t - 1}}$	−1.18	0.01	−119.65	0.00

Panel a2)
	Coef	Std. Err	t	P>\|t\|
$\frac{1}{A_{i t - 1}}$	1587.40	7.83	202.61	0.00
$\frac{{∆ R E V}_{i t} - {∆ R E C}_{i t}}{A_{i t - 1}}$	−0.004	0.0002	−21.06	0.00
$\frac{{P P E}_{i t}}{A_{i t - 1}}$	−0.14	0.001	−130.94	0.00
$\frac{{B M}_{i t}}{A_{i t - 1}}$	0.17	0.001	164.45	0.00
$\frac{{C F O}_{i t}}{A_{i t - 1}}$	−1.18	0.01	−119.65	0.00

Period: 2020–2021
Panel b1)
Obs	Mean abnormal accruals	St. Dev.	Min	Max	R-squared	Adj R-squared
28,808	0.00	0.09	−2.21	3.49	0.50	0.50

Period: 2020–2021
28,808	0.00	0.09	−2.21	3.49	0.50	0.50

Panel b2)
	Coef	Std. Err	t	P>\|t\|
$\frac{1}{A_{i t - 1}}$	101.21	12.06	8.39	0.00
$\frac{{∆ R E V}_{i t} - {∆ R E C}_{i t}}{A_{i t - 1}}$	0.15	0.0007	19.35	0.00
$\frac{{P P E}_{i t}}{A_{i t - 1}}$	−0.07	0.002	−30.59	0.00
$\frac{{B M}_{i t}}{A_{i t - 1}}$	0.12	0.001	82.13	0.00
$\frac{{C F O}_{i t}}{A_{i t - 1}}$	−0.84	0.01	−158.33	0.00

Panel b2)
	Coef	Std. Err	t	P>\|t\|
$\frac{1}{A_{i t - 1}}$	101.21	12.06	8.39	0.00
$\frac{{∆ R E V}_{i t} - {∆ R E C}_{i t}}{A_{i t - 1}}$	0.15	0.0007	19.35	0.00
$\frac{{P P E}_{i t}}{A_{i t - 1}}$	−0.07	0.002	−30.59	0.00
$\frac{{B M}_{i t}}{A_{i t - 1}}$	0.12	0.001	82.13	0.00
$\frac{{C F O}_{i t}}{A_{i t - 1}}$	−0.84	0.01	−158.33	0.00

Note(s): This table summarizes the results of the application of Larcker and Richardson’s (2004) model. The period 2018–2019 was before the introduction of the reform analysed (Panel a). The period 2020–2021 is before the introduction of the reform analysed (Panel b). For each panel, we tabulated the mean value of abnormal accruals (our measure of EM) as well as the regression parameters that allowed us to estimate them

Source(s): Table by authors

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