Table 4. Multilevel mixed-effects linear...

Table 4.

Multilevel mixed-effects linear regression results for firms’ normalized and raw disclosure scores of debt covenant-related and efficiency-related APMs

	DISCLOSURE SCORES OF DEBT-COVENANT-RELATED APMs_it			DISCLOSURE SCORES OF EFFICIENCY-RELATED APMs_it
	Normalized		Raw	Normalized		Raw
Variables	Model 1	Model 2	Model 3	Model 4	Model 5	Model 6
H1/H2: LEVERAGE_it-1	0.246*** (0.026)	0.259*** (0.027)	0.071*** (0.007)	−0.065*** (0.025)	−0.063** (0.025)	−0.021** (0.012)
LOSS_it-1	−0.000 (0.015)	0.001 (0.015)	0.001 (0.004)	−0.054*** (0.014)	−0.054*** (0.014)	−0.028*** (0.007)
H3: LEVERAGE_it-1 x LOSS_it-1		−0.157** (0.086)	−0.034* (0.023)		−0.029 (0.080)	−0.010 (0.038)
SIZE_it-1	0.039*** (0.005)	0.040*** (0.005)	0.011*** (0.001)	0.067*** (0.005)	0.067*** (0.005)	0.029*** (0.002)
MARKET-TO-BOOK_it-1	0.081*** (0.013)	0.080*** (0.013)	0.022*** (0.003)	0.008 (0.012)	0.008 (0.012)	−0.004 (0.006)
SALES GROWTH_it-1	0.011* (0.006)	0.011* (0.006)	0.003* (0.002)	0.010* (0.006)	0.010* (0.006)	0.002 (0.003)
BIG4_it-1	0.051*** (0.014)	0.050*** (0.014)	0.012*** (0.004)	0.058*** (0.013)	0.058*** (0.013)	0.031*** (0.006)
INSTITUTIONAL INVESTORS_it-1	−0.117 (0.575)	−0.116 (0.575)	−0.036 (0.154)	0.432 (0.540)	0.433 (0.540)	0.222 (0.256)
FIRM AGE_it-1	0.071*** (0.023)	0.070*** (0.023)	0.015** (0.006)	0.033 (0.022)	0.032 (0.022)	0.025** (0.010)
LAW AND ENFORCEMENT_it	0.008 (0.030)	0.009 (0.030)	0.004 (0.009)	0.027 (0.036)	0.027 (0.036)	0.013 (0.018)
INVESTOR PROTECTION_it	0.011 (0.041)	0.010 (0.041)	0.001 (0.012)	−0.027 (0.050)	−0.027 (0.050)	−0.012 (0.025)
Industry fixed effects^a	Included	Included	Included	Included	Included	Included
Year fixed effects^a	Included	Included	(0.024)	Included	Included	Included
Random country effects^a	Included	Included	Included	Included	Included	Included
Random firm effects^a	Included	Included	Included	Included	Included	Included
Constant	−0.257*** (0.086)	−0.261*** (0.085)	−0.068*** (0.024)	−0.282*** (0.094)	−0.283*** (0.095)	−0.065 (0.047)
Number of observations	3,683	3,683	3,683	3,683	3,683	3,683
Wald–Chi²	362.81***	366.54***	288.20***	617.15***	617.31***	353.44***

	DISCLOSURE SCORES OF DEBT-COVENANT-RELATED APMs_it			DISCLOSURE SCORES OF EFFICIENCY-RELATED APMs_it
	Normalized		Raw	Normalized		Raw
Variables	Model 1	Model 2	Model 3	Model 4	Model 5	Model 6
H1/H2: LEVERAGE_it-1	0.246*** (0.026)	0.259*** (0.027)	0.071*** (0.007)	−0.065*** (0.025)	−0.063** (0.025)	−0.021** (0.012)
LOSS_it-1	−0.000 (0.015)	0.001 (0.015)	0.001 (0.004)	−0.054*** (0.014)	−0.054*** (0.014)	−0.028*** (0.007)
H3: LEVERAGE_it-1 x LOSS_it-1		−0.157** (0.086)	−0.034* (0.023)		−0.029 (0.080)	−0.010 (0.038)
SIZE_it-1	0.039*** (0.005)	0.040*** (0.005)	0.011*** (0.001)	0.067*** (0.005)	0.067*** (0.005)	0.029*** (0.002)
MARKET-TO-BOOK_it-1	0.081*** (0.013)	0.080*** (0.013)	0.022*** (0.003)	0.008 (0.012)	0.008 (0.012)	−0.004 (0.006)
SALES GROWTH_it-1	0.011* (0.006)	0.011* (0.006)	0.003* (0.002)	0.010* (0.006)	0.010* (0.006)	0.002 (0.003)
BIG4_it-1	0.051*** (0.014)	0.050*** (0.014)	0.012*** (0.004)	0.058*** (0.013)	0.058*** (0.013)	0.031*** (0.006)
INSTITUTIONAL INVESTORS_it-1	−0.117 (0.575)	−0.116 (0.575)	−0.036 (0.154)	0.432 (0.540)	0.433 (0.540)	0.222 (0.256)
FIRM AGE_it-1	0.071*** (0.023)	0.070*** (0.023)	0.015** (0.006)	0.033 (0.022)	0.032 (0.022)	0.025** (0.010)
LAW AND ENFORCEMENT_it	0.008 (0.030)	0.009 (0.030)	0.004 (0.009)	0.027 (0.036)	0.027 (0.036)	0.013 (0.018)
INVESTOR PROTECTION_it	0.011 (0.041)	0.010 (0.041)	0.001 (0.012)	−0.027 (0.050)	−0.027 (0.050)	−0.012 (0.025)
Industry fixed effects^a	Included	Included	Included	Included	Included	Included
Year fixed effects^a	Included	Included	(0.024)	Included	Included	Included
Random country effects^a	Included	Included	Included	Included	Included	Included
Random firm effects^a	Included	Included	Included	Included	Included	Included
Constant	−0.257*** (0.086)	−0.261*** (0.085)	−0.068*** (0.024)	−0.282*** (0.094)	−0.283*** (0.095)	−0.065 (0.047)
Number of observations	3,683	3,683	3,683	3,683	3,683	3,683
Wald–Chi²	362.81***	366.54***	288.20***	617.15***	617.31***	353.44***

Note(s):Table 2 provides the definitions of the variables. ***p < 0.01, **p < 0.05, *p < 0.1 (Standard errors in parentheses). ^aIndividual coefficients of the industry and year fixed effects and random country and firm effects are not reported for parsimony

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