Propensity-score matched sample test of Hypothesis 1
| (1) | (2) | |
|---|---|---|
| Dependent variable = | DisclosureTimeliness | BiggestIncreaseQuarter |
| Negative606Impact | −0.116* | −0.420*** |
| (−1.866) | (−4.641) | |
| ASC606ImpactMagnitude | −0.611 | −2.921* |
| (−0.940) | (−1.906) | |
| Negative606Impact × ASC606ImpactMagnitude | 0.632 | 3.019** |
| (0.970) | (1.971) | |
| NumBusSegs | −0.082 | −0.173 |
| (−1.103) | (−1.172) | |
| SalesVolatility | −0.000 | −0.001 |
| (−1.124) | (−1.348) | |
| Warranty | −0.029 | 0.036 |
| (−0.378) | (0.275) | |
| MultipleElementArrangement | 0.005 | −0.098 |
| (0.087) | (−0.946) | |
| Rebate | −0.027 | 0.037 |
| (−0.310) | (0.253) | |
| AnalystFollowing | −0.071 | −0.092 |
| (−0.908) | (−0.797) | |
| LogFirmAge | 0.003 | 0.016 |
| (0.048) | (0.186) | |
| LogMarketCap | 0.020 | 0.053 |
| (0.545) | (0.764) | |
| BookToMarket | 0.063 | 0.145 |
| (0.911) | (1.239) | |
| InstitutionalOwnership | 0.036 | −0.089 |
| (0.208) | (−0.386) | |
| RestOrWeaknessPast3Years | 0.181 | 0.070 |
| (1.074) | (0.281) | |
| GuidancePastYear | −0.052 | 0.056 |
| (−0.544) | (0.336) | |
| GuidedEPSQ12018 | 0.206** | 0.159 |
| (2.415) | (1.146) | |
| SAB74FinalWordCount | 0.000 | 0.000 |
| (1.054) | (0.480) | |
| 10KLength | 0.000 | 0.000 |
| (0.218) | (0.136) | |
| QualitativeImpactDisclosure | 0.017 | 0.158 |
| (0.135) | (0.778) | |
| ComparePoliciesDisclosure | 0.092 | 0.088 |
| (0.881) | (0.446) | |
| ImplementationStatusDisclosure | −0.133 | −0.402*** |
| (−1.096) | (−2.635) | |
| Constant | 0.721* | 1.969*** |
| (1.988) | (3.138) | |
| Observations | 84 | 84 |
| R-squared | 0.495 | |
| Psuedo R-squared | 0.1306 | |
| Industry FE | Yes | Yes |
| (1) | (2) | |
|---|---|---|
| Dependent variable = | ||
| −0.116* | −0.420*** | |
| (−1.866) | (−4.641) | |
| −0.611 | −2.921* | |
| (−0.940) | (−1.906) | |
| 0.632 | 3.019** | |
| (0.970) | (1.971) | |
| −0.082 | −0.173 | |
| (−1.103) | (−1.172) | |
| −0.000 | −0.001 | |
| (−1.124) | (−1.348) | |
| −0.029 | 0.036 | |
| (−0.378) | (0.275) | |
| 0.005 | −0.098 | |
| (0.087) | (−0.946) | |
| −0.027 | 0.037 | |
| (−0.310) | (0.253) | |
| −0.071 | −0.092 | |
| (−0.908) | (−0.797) | |
| 0.003 | 0.016 | |
| (0.048) | (0.186) | |
| 0.020 | 0.053 | |
| (0.545) | (0.764) | |
| 0.063 | 0.145 | |
| (0.911) | (1.239) | |
| 0.036 | −0.089 | |
| (0.208) | (−0.386) | |
| 0.181 | 0.070 | |
| (1.074) | (0.281) | |
| −0.052 | 0.056 | |
| (−0.544) | (0.336) | |
| 0.206** | 0.159 | |
| (2.415) | (1.146) | |
| 0.000 | 0.000 | |
| (1.054) | (0.480) | |
| 0.000 | 0.000 | |
| (0.218) | (0.136) | |
| 0.017 | 0.158 | |
| (0.135) | (0.778) | |
| 0.092 | 0.088 | |
| (0.881) | (0.446) | |
| −0.133 | −0.402*** | |
| (−1.096) | (−2.635) | |
| Constant | 0.721* | 1.969*** |
| (1.988) | (3.138) | |
| Observations | 84 | 84 |
| 0.495 | ||
| Psuedo | 0.1306 | |
| Industry FE | Yes | Yes |
Note(s): This table displays the results of a test of Hypothesis 1 using a propensity-score matched sample. The “treatment” variable the matching is done for is the variable Negative606Impact, an indicator that equals 1 if ASC 606 decreased net income and 0 otherwise. We match on all control variables used in the analysis. Variables are defined in Appendix A. Robust t-statistics are in parenthesis, with statistical significance denoted as ***p < 0.01, **p < 0.05, *p < 0.1
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