Regression analysis of accounting quality
| Discretionary Bonus | Formula Bonus | |
|---|---|---|
| (1) | (2) | |
| Intercept | −2.329*** | 0.356 |
| (<0.001) | (0.224) | |
| Big4it | −0.214** | 0.475*** |
| (0.023) | (<0.001) | |
| Earning Predict CFit | −0.407** | 0.441*** |
| (0.019) | (0.007) | |
| Abnormal Accrualsit | 2.493*** | −0.93* |
| (<0.001) | (0.071) | |
| ROA Volatilityit | −2.226 | 4.507*** |
| (0.153) | (0.003) | |
| Return Volatilityit | 3.066*** | −1.535** |
| (<0.001) | (0.02) | |
| CEO Tenureit | 0.037*** | −0.043*** |
| (<0.001) | (<0.001) | |
| CEO Dualityit | −0.147** | 0.121** |
| (0.018) | (0.040) | |
| R&D to Salesit | 0.095*** | −0.019 |
| (0.004) | (0.260) | |
| B/M Ratioit | 0.065 | 0.008 |
| (0.105) | (0.773) | |
| Lossit | −0.146 | −0.738*** |
| (0.158) | (<0.001) | |
| Sizeit | −0.026 | 0.177*** |
| (0.257) | (<0.001) | |
| Leverageit | −0.623*** | 0.806*** |
| (<0.001) | (<0.001) | |
| Annual Returnit | 0.165*** | 0.300*** |
| (0.001) | (<0.001) | |
| ROAit | 1.108*** | 0.492 |
| (0.002) | (0.103) | |
| Year indicators | Yes | Yes |
| Industry indicators | Yes | Yes |
| Number of observations | 9,510 | 9,510 |
| Pseudo R2 | 0.080 | 0.123 |
| (1) | (2) | |
|---|---|---|
| −2.329*** | 0.356 | |
| (<0.001) | (0.224) | |
| −0.214** | 0.475*** | |
| (0.023) | (<0.001) | |
| −0.407** | 0.441*** | |
| (0.019) | (0.007) | |
| 2.493*** | −0.93* | |
| (<0.001) | (0.071) | |
| −2.226 | 4.507*** | |
| (0.153) | (0.003) | |
| 3.066*** | −1.535** | |
| (<0.001) | (0.02) | |
| 0.037*** | −0.043*** | |
| (<0.001) | (<0.001) | |
| −0.147** | 0.121** | |
| (0.018) | (0.040) | |
| 0.095*** | −0.019 | |
| (0.004) | (0.260) | |
| 0.065 | 0.008 | |
| (0.105) | (0.773) | |
| −0.146 | −0.738*** | |
| (0.158) | (<0.001) | |
| −0.026 | 0.177*** | |
| (0.257) | (<0.001) | |
| −0.623*** | 0.806*** | |
| (<0.001) | (<0.001) | |
| 0.165*** | 0.300*** | |
| (0.001) | (<0.001) | |
| 1.108*** | 0.492 | |
| (0.002) | (0.103) | |
| Year indicators | Yes | Yes |
| Industry indicators | Yes | Yes |
| Number of observations | 9,510 | 9,510 |
| Pseudo | 0.080 | 0.123 |
Note(s): Presented in this table are the results of logistic regression of Discretionary (Formula) Bonus variables on the test variables for accounting quality. The regressions control for year and 2-digit SIC code industry effects. All variables are defined in Appendix. *, **, and *** indicate that the estimated coefficients are statistically significant at 0.10, 0.05, and 0.01, respectively. P-values in brackets are from Wald tests
Sharing content requires targeting cookies to be enabled. Please update your cookie preferences to use this feature.