EFA FVTOCI classification choice determinants
| (1) | (2) | (3) | (4) | (5) | |
|---|---|---|---|---|---|
| DV = FVTOCI | Pre | Post | Pre | Post | Initial |
| Panel A: EFA FVTOCI classification choice determinants in non-financial firms | |||||
| EFAamt | 1.021 (0.400) | 9.876*** (2.610) | 2.461 (0.850) | 13.991*** (3.120) | 12.579** (2.370) |
| EFAeffect | −0.795* (−1.910) | 0.084 (0.100) | −1.197*** (−2.730) | 0.323 (0.370) | −0.258 (−0.270) |
| EFAmeas | 0.358 (0.650) | 0.206 (0.440) | 0.239 (0.400) | −0.182 (−0.340) | 0.127 (0.220) |
| LEV | −2.766** (−2.240) | −0.306 (−0.220) | −0.488 (−0.250) | ||
| CEOCOMP | −1.944** (−2.080) | 0.693 (0.640) | 1.509 (0.890) | ||
| LogTA | 0.289** (2.060) | 0.103 (0.560) | 0.011 (0.050) | ||
| ROEadj | −0.438 (−1.180) | −1.402 (−1.580) | −2.425 (−0.880) | ||
| ACIND | 0.019** (2.460) | 0.009 (1.130) | 0.021 (1.430) | ||
| BIG4 | 0.682 (0.990) | 0.468 (0.610) | 1.041 (0.930) | ||
| ANALYST | −0.002 (−0.030) | 0.118* (1.760) | 0.111 (1.520) | ||
| Constant | 1.737** (1.990) | 1.454* (1.800) | −3.845 (−1.420) | −2.817 (−0.830) | −2.097 (−0.450) |
| Industry FE | Yes | Yes | Yes | Yes | Yes |
| Year FE | Yes | Yes | Yes | Yes | No |
| N | 277 | 301 | 277 | 301 | 99 |
| Pseudo R2 | 0.113 | 0.147 | 0.234 | 0.238 | 0.256 |
| Panel B: EFA FVTOCI classification choice determinants in financial firms | |||||
| EFAamt | 0.397 (0.450) | 0.788 (1.030) | 0.833 (0.640) | 1.539 (0.890) | 1.220 (0.610) |
| EFAeffect | 0.203 (0.560) | −0.145 (−0.480) | 0.094 (0.220) | −0.182 (−0.520) | −0.214 (−0.440) |
| EFAmeas | 0.795 (1.260) | 0.443 (0.750) | 0.731 (1.100) | 0.373 (0.580) | 0.456 (0.580) |
| LEV | −3.148** (−1.960) | 0.971 (0.380) | 0.941 (0.290) | ||
| CEOCOMP | 1.280 (1.240) | −1.139 (−0.740) | −2.262 (−0.970) | ||
| LogTA | 0.409 (1.530) | 0.598** (2.120) | 0.654* (1.830) | ||
| ROEadj | −1.044 (−0.430) | 1.833 (0.660) | 3.972 (0.880) | ||
| ACIND | 0.005 (0.260) | −0.013 (−0.920) | −0.015 (−0.820) | ||
| BIG4 | 0.408 (0.400) | 0.399 (0.370) | 1.320 (1.140) | ||
| ANALYST | 0.023 (0.250) | −0.157 (−1.630) | −0.195 (−1.350) | ||
| Constant | −0.316 (−0.710) | −0.413 (−0.840) | −9.183* (−1.780) | −12.343** (−2.410) | −13.740** (−1.990) |
| Industry FE | No | No | No | No | No |
| Year FE | Yes | Yes | Yes | Yes | No |
| N | 148 | 152 | 148 | 152 | 50 |
| Pseudo R2 | 0.031 | 0.017 | 0.129 | 0.177 | 0.216 |
| (1) | (2) | (3) | (4) | (5) | |
|---|---|---|---|---|---|
| DV = FVTOCI | Pre | Post | Pre | Post | Initial |
| EFAamt | 1.021 (0.400) | 9.876 | 2.461 (0.850) | 13.991 | 12.579 |
| EFAeffect | −0.795 | 0.084 (0.100) | −1.197 | 0.323 (0.370) | −0.258 (−0.270) |
| EFAmeas | 0.358 (0.650) | 0.206 (0.440) | 0.239 (0.400) | −0.182 (−0.340) | 0.127 (0.220) |
| LEV | −2.766 | −0.306 (−0.220) | −0.488 (−0.250) | ||
| CEOCOMP | −1.944 | 0.693 (0.640) | 1.509 (0.890) | ||
| LogTA | 0.289 | 0.103 (0.560) | 0.011 (0.050) | ||
| ROEadj | −0.438 (−1.180) | −1.402 (−1.580) | −2.425 (−0.880) | ||
| ACIND | 0.019 | 0.009 (1.130) | 0.021 (1.430) | ||
| BIG4 | 0.682 (0.990) | 0.468 (0.610) | 1.041 (0.930) | ||
| ANALYST | −0.002 (−0.030) | 0.118 | 0.111 (1.520) | ||
| Constant | 1.737 | 1.454 | −3.845 (−1.420) | −2.817 (−0.830) | −2.097 (−0.450) |
| Industry FE | Yes | Yes | Yes | Yes | Yes |
| Year FE | Yes | Yes | Yes | Yes | No |
| N | 277 | 301 | 277 | 301 | 99 |
| Pseudo R2 | 0.113 | 0.147 | 0.234 | 0.238 | 0.256 |
| EFAamt | 0.397 (0.450) | 0.788 (1.030) | 0.833 (0.640) | 1.539 (0.890) | 1.220 (0.610) |
| EFAeffect | 0.203 (0.560) | −0.145 (−0.480) | 0.094 (0.220) | −0.182 (−0.520) | −0.214 (−0.440) |
| EFAmeas | 0.795 (1.260) | 0.443 (0.750) | 0.731 (1.100) | 0.373 (0.580) | 0.456 (0.580) |
| LEV | −3.148 | 0.971 (0.380) | 0.941 (0.290) | ||
| CEOCOMP | 1.280 (1.240) | −1.139 (−0.740) | −2.262 (−0.970) | ||
| LogTA | 0.409 (1.530) | 0.598 | 0.654 | ||
| ROEadj | −1.044 (−0.430) | 1.833 (0.660) | 3.972 (0.880) | ||
| ACIND | 0.005 (0.260) | −0.013 (−0.920) | −0.015 (−0.820) | ||
| BIG4 | 0.408 (0.400) | 0.399 (0.370) | 1.320 (1.140) | ||
| ANALYST | 0.023 (0.250) | −0.157 (−1.630) | −0.195 (−1.350) | ||
| Constant | −0.316 (−0.710) | −0.413 (−0.840) | −9.183 | −12.343 | −13.740 |
| Industry FE | No | No | No | No | No |
| Year FE | Yes | Yes | Yes | Yes | No |
| N | 148 | 152 | 148 | 152 | 50 |
| Pseudo | 0.031 | 0.017 | 0.129 | 0.177 | 0.216 |
Note(s): This table presents the results of the determinants of EFA FVTOCI classification choice before and after IFRS 9. The dependent variable FVTOCI is a binary variable that equals one if the firm classifies any of its EFA at FVTOCI, and zero otherwise. Panel A shows the results in non-financial firms and Panel B is the results in financial firms. Columns (1)–(4) examine different determinants on samples of pre- and post-IFRS 9, respectively. Column (5) examines the determinants model on a sub-sample of the initial IFRS 9 adoption year. All z-score (in parentheses) are based on standard errors clustered by firm. All continuous variables are winsorised at the top and bottom one percentile. See Appendix 2 for detailed variable definitions. Two-tailed tests of significance:
*** = <0.01,
** = <0.05 and
* = <0.1
Source(s): Table by authors
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