Table 7 Endogeneity test using entropy...

Table 7

Endogeneity test using entropy balancing (EB)

	DV=Auditor-client_Distance				DV=Audit_Fees
Variables	DisKM	DisMN	DisKM	DisMN	Aud_Fee	Aud_Fee
Chair_Narc	−0.26***	−0.26***			0.19**
Chair_Narc	(−2.67)	(−3.20)			(2.25)
CEO_Narc			−0.21**	−0.21**		0.25**
CEO_Narc			(−2.10)	(−2.36)		(2.48)
Constant	5.19***	5.33***	7.04***	6.92***	2.24	4.32***
Constant	(3.02)	(4.07)	(3.85)	(5.28)	(1.51)	(3.88)
Controls	YES	YES	YES	YES	YES	YES
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	0.222	0.217	0.174	0.171	0.500	0.440

	DV=Auditor-client_Distance				DV=Audit_Fees
Variables	DisKM	DisMN	DisKM	DisMN	Aud_Fee	Aud_Fee
Chair_Narc	−0.26***	−0.26***			0.19**
Chair_Narc	(−2.67)	(−3.20)			(2.25)
CEO_Narc			−0.21**	−0.21**		0.25**
CEO_Narc			(−2.10)	(−2.36)		(2.48)
Constant	5.19***	5.33***	7.04***	6.92***	2.24	4.32***
Constant	(3.02)	(4.07)	(3.85)	(5.28)	(1.51)	(3.88)
Controls	YES	YES	YES	YES	YES	YES
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	0.222	0.217	0.174	0.171	0.500	0.440

Note(s): Table 7 reports the regression results estimated using OLS using entropy balanced sample. 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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