Table 6 Second stage estimation of...

Table 6

Second stage estimation of Heckman two-stage selection model

Variables	DV=Auditor-client distance				DV=Audit fee
Variables	DisKM	DisMN	DisKM	DisMN	Aud_Fee	Aud_Fee
Chair_Narc	−2.458***	−2.497***			1.953***
Chair_Narc	(−0.951)	(−0.804)			(0.636)
CEO_Narc			−2.011**	−2.433***		2.706***
CEO_Narc			(−0.948)	(−0.799)		(0.617)
IMR	0.736	0.381	0.771	0.408	−0.573	−0.537
IMR	(1.126)	(0.951)	(1.120)	(0.945)	(0.762)	(−0.747)
Constant	−0.035	1.987**	−0.003	2.046***	5.358***	5.017**
Constant	(−2.988)	(2.524)	(−2.968)	(2.504)	(2.004)	(1.963)
Year_FE	YES	YES	YES	YES	YES	YES
Industry_FE	YES	YES	YES	YES	YES	YES
Controls	YES	YES	YES	YES	YES	YES
Observations	436	436	436	436	436	436
Adjusted_R²	0.169	0.181	0.169	0.184	0.499	0.512

Variables	DV=Auditor-client distance				DV=Audit fee
Variables	DisKM	DisMN	DisKM	DisMN	Aud_Fee	Aud_Fee
Chair_Narc	−2.458***	−2.497***			1.953***
Chair_Narc	(−0.951)	(−0.804)			(0.636)
CEO_Narc			−2.011**	−2.433***		2.706***
CEO_Narc			(−0.948)	(−0.799)		(0.617)
IMR	0.736	0.381	0.771	0.408	−0.573	−0.537
IMR	(1.126)	(0.951)	(1.120)	(0.945)	(0.762)	(−0.747)
Constant	−0.035	1.987**	−0.003	2.046***	5.358***	5.017**
Constant	(−2.988)	(2.524)	(−2.968)	(2.504)	(2.004)	(1.963)
Year_FE	YES	YES	YES	YES	YES	YES
Industry_FE	YES	YES	YES	YES	YES	YES
Controls	YES	YES	YES	YES	YES	YES
Observations	436	436	436	436	436	436
Adjusted_R²	0.169	0.181	0.169	0.184	0.499	0.512

Note(s): Table 8 reports the regression results of second stage estimation of Heckman two-stage selection model. 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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