Table 4 Robustness tests Variables...

Table 4

Robustness tests

Variables	Alternative measures of AEM		Alternative measure of REM		Alternative fixed-effect setting		Bootstrapping S.E. (1,000 replications)
	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
	ABS_JDA	ABS_DDA	AB_DEXP	AB_PROD	ABS_KDA	REM	ABS_KDA	REM
AACI	−0.001***	−0.001***	0.001***	0.001***	−0.001***	0.001***	−0.001***	0.001***
AACI	(0.000)	(0.000)	(0.000)	(0.000)	(0.000)	(0.000)	(0.000)	(0.000)
Firm size	0.005	0.005	−0.028***	−0.030***	−0.005***	−0.010***	0.000	−0.010***
Firm size	(0.007)	(0.007)	(0.002)	(0.008)	(0.002)	(0.002)	(0.007)	(0.002)
Financial leverage	0.064**	0.064**	0.011	−0.054	0.029*	−0.082***	0.050*	−0.082***
Financial leverage	(0.028)	(0.028)	(0.008)	(0.033)	(0.016)	(0.016)	(0.028)	(0.016)
Profitability	0.366***	0.366***	0.005	−0.954***	0.126***	−1.048***	0.295***	−1.048***
Profitability	(0.055)	(0.055)	(0.017)	(0.053)	(0.035)	(0.034)	(0.052)	(0.036)
Fixed assets	−0.096***	−0.096***	−0.004	0.004	−0.079***	−0.019*	−0.078***	−0.019*
Fixed assets	(0.022)	(0.022)	(0.007)	(0.024)	(0.011)	(0.011)	(0.021)	(0.011)
Growth	0.007*	0.007*	0.001	0.005	0.018***	−0.003	0.010**	−0.003
Growth	(0.004)	(0.004)	(0.001)	(0.004)	(0.004)	(0.004)	(0.004)	(0.004)
Big4 auditor	0.012	0.012	0.008**	0.003	−0.008*	0.014***	0.007	0.014***
Big4 auditor	(0.009)	(0.009)	(0.003)	(0.010)	(0.004)	(0.005)	(0.008)	(0.005)
Firm FE	Yes	Yes	Yes	Yes	No	No	Yes	Yes
Industry FE	No	No	No	No	Yes	Yes	No	No
Province FE	No	No	No	No	Yes	Yes	No	No
Year FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Observations	3,631	3,631	3,631	3,631	3,631	3,631	3,631	3,631
Adj R2	0.181	0.181	0.814	0.586	0.090	0.352	0.169	0.352

Variables	Alternative measures of AEM		Alternative measure of REM		Alternative fixed-effect setting		Bootstrapping S.E. (1,000 replications)
	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
	ABS_JDA	ABS_DDA	AB_DEXP	AB_PROD	ABS_KDA	REM	ABS_KDA	REM
AACI	−0.001***	−0.001***	0.001***	0.001***	−0.001***	0.001***	−0.001***	0.001***
AACI	(0.000)	(0.000)	(0.000)	(0.000)	(0.000)	(0.000)	(0.000)	(0.000)
Firm size	0.005	0.005	−0.028***	−0.030***	−0.005***	−0.010***	0.000	−0.010***
Firm size	(0.007)	(0.007)	(0.002)	(0.008)	(0.002)	(0.002)	(0.007)	(0.002)
Financial leverage	0.064**	0.064**	0.011	−0.054	0.029*	−0.082***	0.050*	−0.082***
Financial leverage	(0.028)	(0.028)	(0.008)	(0.033)	(0.016)	(0.016)	(0.028)	(0.016)
Profitability	0.366***	0.366***	0.005	−0.954***	0.126***	−1.048***	0.295***	−1.048***
Profitability	(0.055)	(0.055)	(0.017)	(0.053)	(0.035)	(0.034)	(0.052)	(0.036)
Fixed assets	−0.096***	−0.096***	−0.004	0.004	−0.079***	−0.019*	−0.078***	−0.019*
Fixed assets	(0.022)	(0.022)	(0.007)	(0.024)	(0.011)	(0.011)	(0.021)	(0.011)
Growth	0.007*	0.007*	0.001	0.005	0.018***	−0.003	0.010**	−0.003
Growth	(0.004)	(0.004)	(0.001)	(0.004)	(0.004)	(0.004)	(0.004)	(0.004)
Big4 auditor	0.012	0.012	0.008**	0.003	−0.008*	0.014***	0.007	0.014***
Big4 auditor	(0.009)	(0.009)	(0.003)	(0.010)	(0.004)	(0.005)	(0.008)	(0.005)
Firm FE	Yes	Yes	Yes	Yes	No	No	Yes	Yes
Industry FE	No	No	No	No	Yes	Yes	No	No
Province FE	No	No	No	No	Yes	Yes	No	No
Year FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Observations	3,631	3,631	3,631	3,631	3,631	3,631	3,631	3,631
Adj R2	0.181	0.181	0.814	0.586	0.090	0.352	0.169	0.352

Note(s): Robust standard errors in parentheses (***p < 0.01, **p < 0.05 and *p < 0.1)

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