Table 10 PSM analysis Panel A –...

Table 10

PSM analysis

Panel A – descriptive statistics: covariate matching
Variables	Treated [ATE]	Control [ATE]	Difference	t-statistics
LNBOD	2.471	2.471	−0.000	−0.01
INDPER	0.761	0.768	−0.007	−0.32
CEODUAL	0.575	0.563	0.012	0.77
LNMEET	2.122	2.156	−0.034	−0.83
BIG4	0.918	0.901	0.017	1.17
AUDOPIN	0.304	0.311	−0.007	−0.92
RESTATE	0.049	0.043	0.006	1.20
LNSIZE	8.226	8.203	0.023	1.80*
LEVER	0.203	0.201	0.002	1.07
SALEGR	0.071	0.063	0.008	0.86
LOSS	0.044	0.064	0.020	2.42**
ROA	0.085	0.083	0.002	0.73
BETA	1.100	1.093	0.007	1.30

Panel A – descriptive statistics: covariate matching
Variables	Treated [ATE]	Control [ATE]	Difference	t-statistics
LNBOD	2.471	2.471	−0.000	−0.01
INDPER	0.761	0.768	−0.007	−0.32
CEODUAL	0.575	0.563	0.012	0.77
LNMEET	2.122	2.156	−0.034	−0.83
BIG4	0.918	0.901	0.017	1.17
AUDOPIN	0.304	0.311	−0.007	−0.92
RESTATE	0.049	0.043	0.006	1.20
LNSIZE	8.226	8.203	0.023	1.80*
LEVER	0.203	0.201	0.002	1.07
SALEGR	0.071	0.063	0.008	0.86
LOSS	0.044	0.064	0.020	2.42**
ROA	0.085	0.083	0.002	0.73
BETA	1.100	1.093	0.007	1.30

Panel B – regression results using the PSM sample
Variables	(1)	(2)	(3)	(4)	(5)	(6)
	PEG	PEG	PEG	MPEG	MPEG	MPEG
Intercept	0.075***	0.081***	0.08***	0.149***	0.159***	0.158***
Intercept	(10.962)	(12.602)	(12.459)	(23.833)	(26.967)	(26.686)
LNFEM	−0.004***			−0.006***
LNFEM	(−2.724)			(−4.813)
FEMDUM		−0.005***			−0.003**
FEMDUM		(−3.147)			(−2.198)
FEMPER			−0.011**			−0.022***
FEMPER			(−1.964)			(−4.421)
LNBOD	−0.007***	−0.009***	−0.009***	−0.019***	−0.023***	−0.023***
LNBOD	(−2.867)	(−4.033)	(−4.433)	(−8.706)	(−11.746)	(−11.821)
INDPER	−0.002	−0.003	−0.002	−0.001	−0.002	−0.001
INDPER	(−0.634)	(−0.807)	(−0.764)	(−0.327)	(−0.756)	(−0.476)
CEODUAL	0.003**	0.003**	0.003**	−0.003***	−0.003**	−0.003***
CEODUAL	(2.378)	(2.414)	(2.375)	(−2.69)	(−2.547)	(−2.615)
LNMEET	0.009***	0.009***	0.009***	−0.001	−0.002	−0.001
LNMEET	(4.823)	(4.774)	(4.817)	(−0.844)	(−0.923)	(−0.834)
BIG4	−0.004*	−0.004	−0.004*	−0.001	−0.001	−0.001
BIG4	(−1.704)	(−1.626)	(−1.723)	(0.021)	(0.026)	(−0.001)
AUDOPIN	0.007***	0.007***	0.007***	−0.002**	−0.002*	−0.002**
AUDOPIN	(6.143)	(6.232)	(6.189)	(−2.02)	(−1.793)	(−1.992)
RESTATE	0.005*	0.005*	0.005*	0.009***	0.01***	0.009***
RESTATE	(1.928)	(1.948)	(1.931)	(4.259)	(4.276)	(4.262)
LNSIZE	−0.001	−0.001	−0.001	−0.001	−0.001*	−0.001
LNSIZE	(−1.411)	(−1.537)	(−1.543)	(−1.28)	(−1.833)	(−1.365)
LEVER	0.03***	0.029***	0.029***	0.025***	0.025***	0.025***
LEVER	(9.303)	(9.257)	(9.292)	(8.704)	(8.64)	(8.691)
LOSS	0.034***	0.034***	0.034***	0.026***	0.026***	0.026***
LOSS	(12.293)	(12.294)	(12.289)	(10.139)	(10.132)	(10.131)
ROA	−0.061***	−0.061***	−0.061***	−0.039***	−0.039***	−0.039***
ROA	(−14.069)	(−14.122)	(−14.085)	(−9.831)	(−9.901)	(−9.849)
SALEGR	−0.007**	−0.007**	−0.007**	0.005*	0.006**	0.005*
SALEGR	(−2.459)	(−2.396)	(−2.434)	(1.910)	(2.076)	(1.908)
BETA	0.019***	0.019***	0.019***	0.018***	0.018***	0.018***
BETA	(15.841)	(15.959)	(15.885)	(16.298)	(16.567)	(16.312)
Industry	Yes	Yes	Yes	Yes	Yes	Yes
Year	Yes	Yes	Yes	Yes	Yes	Yes
Observations	6,160	6,216	6,208	6,142	62,10	6,198
Adj R²	14.29	14.27	14.13	11.88	11.69	11.73

Panel B – regression results using the PSM sample
Variables	(1)	(2)	(3)	(4)	(5)	(6)
	PEG	PEG	PEG	MPEG	MPEG	MPEG
Intercept	0.075***	0.081***	0.08***	0.149***	0.159***	0.158***
Intercept	(10.962)	(12.602)	(12.459)	(23.833)	(26.967)	(26.686)
LNFEM	−0.004***			−0.006***
LNFEM	(−2.724)			(−4.813)
FEMDUM		−0.005***			−0.003**
FEMDUM		(−3.147)			(−2.198)
FEMPER			−0.011**			−0.022***
FEMPER			(−1.964)			(−4.421)
LNBOD	−0.007***	−0.009***	−0.009***	−0.019***	−0.023***	−0.023***
LNBOD	(−2.867)	(−4.033)	(−4.433)	(−8.706)	(−11.746)	(−11.821)
INDPER	−0.002	−0.003	−0.002	−0.001	−0.002	−0.001
INDPER	(−0.634)	(−0.807)	(−0.764)	(−0.327)	(−0.756)	(−0.476)
CEODUAL	0.003**	0.003**	0.003**	−0.003***	−0.003**	−0.003***
CEODUAL	(2.378)	(2.414)	(2.375)	(−2.69)	(−2.547)	(−2.615)
LNMEET	0.009***	0.009***	0.009***	−0.001	−0.002	−0.001
LNMEET	(4.823)	(4.774)	(4.817)	(−0.844)	(−0.923)	(−0.834)
BIG4	−0.004*	−0.004	−0.004*	−0.001	−0.001	−0.001
BIG4	(−1.704)	(−1.626)	(−1.723)	(0.021)	(0.026)	(−0.001)
AUDOPIN	0.007***	0.007***	0.007***	−0.002**	−0.002*	−0.002**
AUDOPIN	(6.143)	(6.232)	(6.189)	(−2.02)	(−1.793)	(−1.992)
RESTATE	0.005*	0.005*	0.005*	0.009***	0.01***	0.009***
RESTATE	(1.928)	(1.948)	(1.931)	(4.259)	(4.276)	(4.262)
LNSIZE	−0.001	−0.001	−0.001	−0.001	−0.001*	−0.001
LNSIZE	(−1.411)	(−1.537)	(−1.543)	(−1.28)	(−1.833)	(−1.365)
LEVER	0.03***	0.029***	0.029***	0.025***	0.025***	0.025***
LEVER	(9.303)	(9.257)	(9.292)	(8.704)	(8.64)	(8.691)
LOSS	0.034***	0.034***	0.034***	0.026***	0.026***	0.026***
LOSS	(12.293)	(12.294)	(12.289)	(10.139)	(10.132)	(10.131)
ROA	−0.061***	−0.061***	−0.061***	−0.039***	−0.039***	−0.039***
ROA	(−14.069)	(−14.122)	(−14.085)	(−9.831)	(−9.901)	(−9.849)
SALEGR	−0.007**	−0.007**	−0.007**	0.005*	0.006**	0.005*
SALEGR	(−2.459)	(−2.396)	(−2.434)	(1.910)	(2.076)	(1.908)
BETA	0.019***	0.019***	0.019***	0.018***	0.018***	0.018***
BETA	(15.841)	(15.959)	(15.885)	(16.298)	(16.567)	(16.312)
Industry	Yes	Yes	Yes	Yes	Yes	Yes
Year	Yes	Yes	Yes	Yes	Yes	Yes
Observations	6,160	6,216	6,208	6,142	62,10	6,198
Adj R²	14.29	14.27	14.13	11.88	11.69	11.73

Note(s): ***, **, * Indicate statistical significance at the 1, 5 and 10 percent levels, respectively, based on a two-tailed test. t-statistics are in parentheses. Standard errors are two-way clustered by firm and year to correct for cross-sectional and time-series dependence. See Appendix for variable definitions

Source(s): Computed by authors

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