Table 7. Regression results (for H3 :... | Emerald Publishing

Table 7.

Regression results (for H3: Audit quality and proximity)

Variables	Model-5	Model-6	Model-7	Model-8	Model-9	Model-10	Model-11	Model-12
Variables	Jones-91	Jones-91	Dechow-02	Dechow-02	Stubben-10	Stubben-10	Small profit	Small profit
lnProx KM	0.001** (0.000)		0.021* (0.013)		0.003* (0.004)		0.214* (1.662)
lnProx min		0.0001* (0.000)		0.025* (0.013)		0.009** (0.004)		0.271* (1.773)
Chair gen	0.004 (0.013)	0.004 (0.013)	0.021 (0.027)	0.021 (0.027)	−0.007 (0.009)	−0.008 (0.008)	−1.195 (−1.310)	−1.174 (−1.295)
FD ratio	0.003 (0.020)	0.003 (0.020)	−0.022 (0.044)	−0.017 (0.044)	0.009 (0.013)	0.012 (0.013)	0.622 (0.614)	0.590 (0.580)
lnAC size	−0.003 (0.011)	−0.003 (0.011)	0.033 (0.022)	0.034 (0.022)	−0.006 (0.007)	−0.006 (0.007)	−0.540 (−0.912)	−0.557 (−0.947)
lnFirm age	0.011* (0.006)	0.010 (0.006)	0.012 (0.013)	0.010 (0.013)	0.003 (0.004)	0.002 (0.004)	0.073 (0.213)	0.068 (0.198)
Audit ten	0.001 (0.004)	0.001 (0.004)	0.019** (0.008)	0.016* (0.008)	−0.001 (0.003)	−0.002 (0.003)	−0.129 (−0.679)	−0.128 (−0.675)
lnFirm size	−0.004 (0.003)	−0.004 (0.003)	−0.003 (0.005)	−0.003 (0.005)	−0.003 (0.002)	−0.003 (0.002)	0.123 (0.882)	0.128 (0.921)
ROA	−0.063 (0.067)	−0.063 (0.067)	0.086 (0.142)	0.063 (0.141)	−0.082* (0.044)	−0.091** (0.043)
YearEndDec31	−0.029 (0.024)	−0.030 (0.024)	0.058 (0.042)	0.052 (0.041)	0.001 (0.014)	−0.001 (0.014)	14.346 (0.018)	14.314 (0.018)
BIG4	0.004 (0.006)	0.004 (0.006)	−0.042*** (0.013)	−0.040*** (0.013)	−0.005 (0.004)	−0.005 (0.004)	−0.269 (−0.878)	−0.270 (−0.881)
IDR	−0.032 (0.032)	−0.032 (0.032)	0.032 (0.063)	0.037 (0.063)	−0.011 (0.023)	−0.007 (0.023)	−4.574** (−2.487)	−4.612** (−2.508)
Constant	0.147** (0.073)	0.150** (0.073)	−0.163 (0.152)	−0.134 (0.153)	0.078 (0.051)	0.094* (0.051)	−10.301 (−0.013)	−9.908 (−0.012)
Observations	249	249	171	171	241	241	455	455
R²	0.093	0.091	0.199	0.203	0.103	0.119	0.311	0.311
YearFE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
IndustryFE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Prob>F/Prov>chi²	0.000	0.000	0.0393	0.0309	0.368	0.179	0.000	0.000

Variables	Model-5	Model-6	Model-7	Model-8	Model-9	Model-10	Model-11	Model-12
Variables	Jones-91	Jones-91	Dechow-02	Dechow-02	Stubben-10	Stubben-10	Small profit	Small profit
lnProx KM	0.001** (0.000)		0.021* (0.013)		0.003* (0.004)		0.214* (1.662)
lnProx min		0.0001* (0.000)		0.025* (0.013)		0.009** (0.004)		0.271* (1.773)
Chair gen	0.004 (0.013)	0.004 (0.013)	0.021 (0.027)	0.021 (0.027)	−0.007 (0.009)	−0.008 (0.008)	−1.195 (−1.310)	−1.174 (−1.295)
FD ratio	0.003 (0.020)	0.003 (0.020)	−0.022 (0.044)	−0.017 (0.044)	0.009 (0.013)	0.012 (0.013)	0.622 (0.614)	0.590 (0.580)
lnAC size	−0.003 (0.011)	−0.003 (0.011)	0.033 (0.022)	0.034 (0.022)	−0.006 (0.007)	−0.006 (0.007)	−0.540 (−0.912)	−0.557 (−0.947)
lnFirm age	0.011* (0.006)	0.010 (0.006)	0.012 (0.013)	0.010 (0.013)	0.003 (0.004)	0.002 (0.004)	0.073 (0.213)	0.068 (0.198)
Audit ten	0.001 (0.004)	0.001 (0.004)	0.019** (0.008)	0.016* (0.008)	−0.001 (0.003)	−0.002 (0.003)	−0.129 (−0.679)	−0.128 (−0.675)
lnFirm size	−0.004 (0.003)	−0.004 (0.003)	−0.003 (0.005)	−0.003 (0.005)	−0.003 (0.002)	−0.003 (0.002)	0.123 (0.882)	0.128 (0.921)
ROA	−0.063 (0.067)	−0.063 (0.067)	0.086 (0.142)	0.063 (0.141)	−0.082* (0.044)	−0.091** (0.043)
YearEndDec31	−0.029 (0.024)	−0.030 (0.024)	0.058 (0.042)	0.052 (0.041)	0.001 (0.014)	−0.001 (0.014)	14.346 (0.018)	14.314 (0.018)
BIG4	0.004 (0.006)	0.004 (0.006)	−0.042*** (0.013)	−0.040*** (0.013)	−0.005 (0.004)	−0.005 (0.004)	−0.269 (−0.878)	−0.270 (−0.881)
IDR	−0.032 (0.032)	−0.032 (0.032)	0.032 (0.063)	0.037 (0.063)	−0.011 (0.023)	−0.007 (0.023)	−4.574** (−2.487)	−4.612** (−2.508)
Constant	0.147** (0.073)	0.150** (0.073)	−0.163 (0.152)	−0.134 (0.153)	0.078 (0.051)	0.094* (0.051)	−10.301 (−0.013)	−9.908 (−0.012)
Observations	249	249	171	171	241	241	455	455
R²	0.093	0.091	0.199	0.203	0.103	0.119	0.311	0.311
YearFE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
IndustryFE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Prob>F/Prov>chi²	0.000	0.000	0.0393	0.0309	0.368	0.179	0.000	0.000

Notes:

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

Source: Authors’ own creation