Table 8

Propensity-score matched sample test of Hypothesis 1

(1)(2)
Dependent variable = DisclosureTimelinessBiggestIncreaseQuarter
Negative606Impact−0.116*−0.420***
(−1.866)(−4.641)
ASC606ImpactMagnitude−0.611−2.921*
(−0.940)(−1.906)
Negative606Impact × ASC606ImpactMagnitude0.6323.019**
(0.970)(1.971)
NumBusSegs−0.082−0.173
(−1.103)(−1.172)
SalesVolatility−0.000−0.001
(−1.124)(−1.348)
Warranty−0.0290.036
(−0.378)(0.275)
MultipleElementArrangement0.005−0.098
(0.087)(−0.946)
Rebate−0.0270.037
(−0.310)(0.253)
AnalystFollowing−0.071−0.092
(−0.908)(−0.797)
LogFirmAge0.0030.016
(0.048)(0.186)
LogMarketCap0.0200.053
(0.545)(0.764)
BookToMarket0.0630.145
(0.911)(1.239)
InstitutionalOwnership0.036−0.089
(0.208)(−0.386)
RestOrWeaknessPast3Years0.1810.070
(1.074)(0.281)
GuidancePastYear−0.0520.056
(−0.544)(0.336)
GuidedEPSQ120180.206**0.159
(2.415)(1.146)
SAB74FinalWordCount0.0000.000
(1.054)(0.480)
10KLength0.0000.000
(0.218)(0.136)
QualitativeImpactDisclosure0.0170.158
(0.135)(0.778)
ComparePoliciesDisclosure0.0920.088
(0.881)(0.446)
ImplementationStatusDisclosure−0.133−0.402***
(−1.096)(−2.635)
Constant0.721*1.969***
(1.988)(3.138)
Observations8484
R-squared0.495 
Psuedo R-squared 0.1306
Industry FEYesYes

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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