Table 4 Baseline results ( H1 and H2 )...

Table 4

Baseline results (H1 and H2)

Variables	DV=Auditor-client distance				DV=Audit fee
Variables	DisKM	DisMN	DisKM	DisMN	Aud_Fee	Aud_Fee
Independent variable
Chair_Narc	−1.343***	−1.408***			0.745**
Chair_Narc	(−2.741)	(−3.403)			(2.157)
CEO_Narc			−0.784*	−1.193***		1.003***
CEO_Narc			(−1.569)	(−2.832)		(2.881)
Control variables
Chair_Gen	−0.033	−0.001	0.036	0.069	0.033	−0.002
Chair_Gen	(−0.233)	(−0.008)	(0.253)	(0.588)	(0.333)	(−0.022)
CEO_Gen	−0.159	0.027	−0.184	0.005	−0.317*	−0.316*
CEO_Gen	(−0.636)	(0.128)	(−0.731)	(0.025)	(−1.804)	(−1.806)
FDR	0.415	0.052	0.344	0.019	0.350	0.371
FDR	(1.070)	(0.158)	(0.877)	(0.059)	(1.280)	(1.358)
IDR	1.541***	1.357***	1.556***	1.349***	−0.187	−0.212
IDR	(2.823)	(2.943)	(2.805)	(2.888)	(−0.486)	(−0.549)
AC_Size	0.155	0.004	0.145	0.005	0.090	0.065
AC_Size	(0.848)	(0.024)	(0.784)	(0.034)	(0.698)	(0.504)
BIG4	−0.268**	−0.243**	−0.300**	−0.275**	0.394***	0.394***
BIG4	(−2.063)	(−2.210)	(−2.264)	(−2.462)	(4.300)	(4.271)
Aud_Ten	0.006	−0.000	0.003	−0.002	0.036	0.041
Aud_Ten	(0.093)	(−0.005)	(0.047)	(−0.031)	(0.749)	(0.880)
Aud_Lag	−0.219	−0.178	−0.249	−0.228*	−0.214*	−0.171
Aud_Lag	(−1.411)	(−1.357)	(−1.566)	(−1.702)	(−1.955)	(−1.544)
Firm_Size	0.045	0.059	0.031	0.055	0.235***	0.229***
Firm_Size	(0.896)	(1.397)	(0.629)	(1.305)	(6.697)	(6.588)
Firm_Age	−0.204*	−0.189*	−0.221*	−0.212**	−0.233***	−0.218**
Firm_Age	(−1.702)	(−1.864)	(−1.810)	(−2.063)	(−2.754)	(−2.569)
Lev	−0.232	−0.144	−0.265	−0.188	−0.067	−0.105
Lev	(−1.073)	(−0.790)	(−1.207)	(−1.019)	(−0.443)	(−0.689)
ROA	0.448	0.350	0.722	0.609	1.229	1.043
ROA	(0.332)	(0.307)	(0.505)	(0.506)	(1.291)	(1.049)
YearEnd	0.544*	0.284	0.591*	0.324	−0.488**	−0.522**
YearEnd	(1.673)	(1.036)	(1.808)	(1.178)	(−2.129)	(−2.294)
Constant	1.398	2.607**	1.777	2.961***	4.504***	4.438***
Constant	(1.065)	(2.351)	(1.340)	(2.651)	(4.864)	(4.809)
Year_FE	YES	YES	YES	YES	YES	YES
Industry_FE	YES	YES	YES	YES	YES	YES
Observations	436	436	436	436	436	436
Adjusted_R²	0.173	0.182	0.160	0.183	0.486	0.494

Variables	DV=Auditor-client distance				DV=Audit fee
Variables	DisKM	DisMN	DisKM	DisMN	Aud_Fee	Aud_Fee
Independent variable
Chair_Narc	−1.343***	−1.408***			0.745**
Chair_Narc	(−2.741)	(−3.403)			(2.157)
CEO_Narc			−0.784*	−1.193***		1.003***
CEO_Narc			(−1.569)	(−2.832)		(2.881)
Control variables
Chair_Gen	−0.033	−0.001	0.036	0.069	0.033	−0.002
Chair_Gen	(−0.233)	(−0.008)	(0.253)	(0.588)	(0.333)	(−0.022)
CEO_Gen	−0.159	0.027	−0.184	0.005	−0.317*	−0.316*
CEO_Gen	(−0.636)	(0.128)	(−0.731)	(0.025)	(−1.804)	(−1.806)
FDR	0.415	0.052	0.344	0.019	0.350	0.371
FDR	(1.070)	(0.158)	(0.877)	(0.059)	(1.280)	(1.358)
IDR	1.541***	1.357***	1.556***	1.349***	−0.187	−0.212
IDR	(2.823)	(2.943)	(2.805)	(2.888)	(−0.486)	(−0.549)
AC_Size	0.155	0.004	0.145	0.005	0.090	0.065
AC_Size	(0.848)	(0.024)	(0.784)	(0.034)	(0.698)	(0.504)
BIG4	−0.268**	−0.243**	−0.300**	−0.275**	0.394***	0.394***
BIG4	(−2.063)	(−2.210)	(−2.264)	(−2.462)	(4.300)	(4.271)
Aud_Ten	0.006	−0.000	0.003	−0.002	0.036	0.041
Aud_Ten	(0.093)	(−0.005)	(0.047)	(−0.031)	(0.749)	(0.880)
Aud_Lag	−0.219	−0.178	−0.249	−0.228*	−0.214*	−0.171
Aud_Lag	(−1.411)	(−1.357)	(−1.566)	(−1.702)	(−1.955)	(−1.544)
Firm_Size	0.045	0.059	0.031	0.055	0.235***	0.229***
Firm_Size	(0.896)	(1.397)	(0.629)	(1.305)	(6.697)	(6.588)
Firm_Age	−0.204*	−0.189*	−0.221*	−0.212**	−0.233***	−0.218**
Firm_Age	(−1.702)	(−1.864)	(−1.810)	(−2.063)	(−2.754)	(−2.569)
Lev	−0.232	−0.144	−0.265	−0.188	−0.067	−0.105
Lev	(−1.073)	(−0.790)	(−1.207)	(−1.019)	(−0.443)	(−0.689)
ROA	0.448	0.350	0.722	0.609	1.229	1.043
ROA	(0.332)	(0.307)	(0.505)	(0.506)	(1.291)	(1.049)
YearEnd	0.544*	0.284	0.591*	0.324	−0.488**	−0.522**
YearEnd	(1.673)	(1.036)	(1.808)	(1.178)	(−2.129)	(−2.294)
Constant	1.398	2.607**	1.777	2.961***	4.504***	4.438***
Constant	(1.065)	(2.351)	(1.340)	(2.651)	(4.864)	(4.809)
Year_FE	YES	YES	YES	YES	YES	YES
Industry_FE	YES	YES	YES	YES	YES	YES
Observations	436	436	436	436	436	436
Adjusted_R²	0.173	0.182	0.160	0.183	0.486	0.494

Note(s): Table 4 reports the baseline regression results estimated using OLS. Coefficients are presented with t-statistics in parentheses. Variable definitions are provided in Appendix. ***, **, and * indicate significance at the 1%, 5%, and 10% levels, respectively. DV stands for dependent variable

Source(s): Authors' construction

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