Table 10

Executive narcissism, audit quality and audit report delay

VariablesDV=Audit qualityDV=Audit_Report_Lag
Jones91Stubben10SPJones91Stubben10SPAud_LagAud_Lag
Chair_Narc−0.033−0.012−0.201   −0.191 
(−1.15)(−0.64)(−0.151)   (−1.192) 
CEO_Narc   −0.011−0.0130.852 −0.565***
   (−0.35)(−0.64)(0.60) (−3.56)
Constant0.1160.090−30.7010.1110.070−26.5955.255***5.170***
(1.318)(1.640)(−0.010)(1.236)(1.247)(−0.017)(15.027)(14.877)
ControlsYESYESYESYESYESYESYESYES
Year_FEYESYESYESYESYESYESYESYES
Industry_FEYESYESYESYESYESYESYESYES
Observations223217344220214340436436
Adjusted_R20.130.230.2710.120.230.3030.2210.246

Note(s): Table 10 reports the impact of executive narcissism on audit quality and audit report delay. We use three proxies for audit quality: Jones91 (Jones, 1991), Stubben10 (Stubben, 2010), and SP (small profit), where Jones91 and Stubben10 are continuous variables, and SP is an indicator variable equal to 1 if profit is less than 1% of total assets and 0 otherwise, following prior literature (Dechow et al., 2010). The mean values of Jones91, Stubben10, and SP are 0.042, 0.027, and 0.49, respectively. Audit report lag (ARL) is measured as the number of days from the accounting year-end to audit report issue and has a mean of 4.76 days. 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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