Table 5.

Regression results (for H1: audit fee and proximity)

VariablesModel-1Model-2
Audit feeAudit fee
lnProx KM0.007** (0.004) 
lnProx min 0.003** (0.001)
Chair gen−0.339** (0.167)−0.336** (0.167)
FD ratio0.536** (0.239)0.526** (0.239)
lnAC size0.196 (0.121)0.188 (0.121)
lnARL−0.239** (0.099)−0.244** (0.099)
lnFirm age−0.211*** (0.080)−0.218*** (0.080)
Audit ten0.023 (0.043)0.021 (0.043)
lnFirm size0.264*** (0.030)0.265*** (0.030)
ROA1.117 (0.829)1.127 (0.829)
YearEndDec31−0.796*** (0.224)−0.795*** (0.224)
BIG40.160** (0.070)0.158** (0.071)
IDR−0.141 (0.358)−0.138 (0.358)
Constant4.536*** (0.873)4.594*** (0.874)
Observations469469
Adjusted R-squared0.4750.475
YearFEYesYes
IndustryFEYesYes
Prob>F0.0000.000
Notes:

***p < 0.01; **p < 0.05; *p < 0.1 (Standard errors in parentheses)

Source: Authors’ own creation

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