Table 9 Entropy balance results Before... | Emerald Publishing

Table 9

Entropy balance results

Before balance
	Treatment (longer auditor tenure)			Control (shorter auditor tenure)
Variables	Mean	Variance	Skewness	Mean	Variance	Skewness
Panel A. Covariate balance
AC_IND	86.83	476.1	−2.17	85.4	488.1	−1.843
${G E N D}_{}$	30.28	157.2	−0.154	30.33	155.1	−0.236
${C E O D}_{}$	0.123	0.108	2.29	0.081	0.074	3.076
${P O L}_{}$	0.928	0.067	−3.312	0.934	0.062	−3.48
${T A}_{}$	21.65	3.414	0.426	21.66	3.387	0.388
${C E O M}_{}$	0.905	0.086	−2.76	0.901	0.089	−2.684
${B T E N}_{}$	6.678	9.783	2.081	5.959	6.427	1.116
After balance
AC_IND	86.83	476.1	−2.17	86.82	476.1	−2.169
${G E N D}_{}$	30.28	157.2	−0.154	30.28	157.2	−0.153
${C E O D}_{}$	0.123	0.108	2.29	0.124	0.109	2.287
${P O L}_{}$	0.928	0.067	−3.312	0.928	0.067	−3.308
${T A}_{}$	21.65	3.414	0.426	21.64	3.413	0.429
${C E O M}_{}$	0.905	0.086	−2.76	0.905	0.086	−2.757
${B T E N}_{}$	6.678	9.783	2.081	6.677	9.789	2.079

Before balance
	Treatment (longer auditor tenure)			Control (shorter auditor tenure)
Variables	Mean	Variance	Skewness	Mean	Variance	Skewness
Panel A. Covariate balance
AC_IND	86.83	476.1	−2.17	85.4	488.1	−1.843
${G E N D}_{}$	30.28	157.2	−0.154	30.33	155.1	−0.236
${C E O D}_{}$	0.123	0.108	2.29	0.081	0.074	3.076
${P O L}_{}$	0.928	0.067	−3.312	0.934	0.062	−3.48
${T A}_{}$	21.65	3.414	0.426	21.66	3.387	0.388
${C E O M}_{}$	0.905	0.086	−2.76	0.901	0.089	−2.684
${B T E N}_{}$	6.678	9.783	2.081	5.959	6.427	1.116
After balance
AC_IND	86.83	476.1	−2.17	86.82	476.1	−2.169
${G E N D}_{}$	30.28	157.2	−0.154	30.28	157.2	−0.153
${C E O D}_{}$	0.123	0.108	2.29	0.124	0.109	2.287
${P O L}_{}$	0.928	0.067	−3.312	0.928	0.067	−3.308
${T A}_{}$	21.65	3.414	0.426	21.64	3.413	0.429
${C E O M}_{}$	0.905	0.086	−2.76	0.905	0.086	−2.757
${B T E N}_{}$	6.678	9.783	2.081	6.677	9.789	2.079

Panel B. Entropy balance sample regressions
	(1)	(2)	(3)
Variables	ESG_SCORE	ESG_COMB	ESG_AVE
AC_IND	0.0035*** (4.791)	0.0033*** (4.084)	0.0041*** (5.140)
${G E N D}_{}$	0.0013 (1.418)	0.0019* (1.794)	0.0016 (1.605)
${C E O D}_{}$	−0.1190** (−2.015)	−0.1277** (−2.165)	−0.1429** (−2.205)
${P O L}_{}$	0.3188** (2.411)	0.3572*** (2.595)	0.3011** (2.200)
${T A}_{}$	0.1267*** (4.500)	0.1334*** (4.220)	0.1359*** (4.879)
${C E O M}_{}$	−0.0511 (−1.468)	−0.0315 (−0.736)	−0.0673* (−1.899)
${B T E N}_{}$	0.0078 (1.034)	0.0052 (0.643)	0.0070 (0.875)
${A T E N}_{}$ (treatment)	−0.0972***(−3.513)	−0.0954***(−3.084)	−0.1092***(−3.600)
Constant	0.5411 (0.903)	0.3205 (0.476)	0.2873 (0.482)
Firm fixed effects	Yes	Yes	Yes
Year fixed effects	Yes	Yes	Yes
Observations	1,156	1,156	1,156
R-squared	0.895	0.851	0.893
Adjusted R-squared	0.863	0.805	0.860
F-statistic	11.54	9.407	12.44

Panel B. Entropy balance sample regressions
	(1)	(2)	(3)
Variables	ESG_SCORE	ESG_COMB	ESG_AVE
AC_IND	0.0035*** (4.791)	0.0033*** (4.084)	0.0041*** (5.140)
${G E N D}_{}$	0.0013 (1.418)	0.0019* (1.794)	0.0016 (1.605)
${C E O D}_{}$	−0.1190** (−2.015)	−0.1277** (−2.165)	−0.1429** (−2.205)
${P O L}_{}$	0.3188** (2.411)	0.3572*** (2.595)	0.3011** (2.200)
${T A}_{}$	0.1267*** (4.500)	0.1334*** (4.220)	0.1359*** (4.879)
${C E O M}_{}$	−0.0511 (−1.468)	−0.0315 (−0.736)	−0.0673* (−1.899)
${B T E N}_{}$	0.0078 (1.034)	0.0052 (0.643)	0.0070 (0.875)
${A T E N}_{}$ (treatment)	−0.0972***(−3.513)	−0.0954***(−3.084)	−0.1092***(−3.600)
Constant	0.5411 (0.903)	0.3205 (0.476)	0.2873 (0.482)
Firm fixed effects	Yes	Yes	Yes
Year fixed effects	Yes	Yes	Yes
Observations	1,156	1,156	1,156
R-squared	0.895	0.851	0.893
Adjusted R-squared	0.863	0.805	0.860
F-statistic	11.54	9.407	12.44

Note(s): Robust t-statistics in parentheses. *, ** and *** represent significant at the 10, 5 and 1% level, respectively

Source(s): Authors’ own work