Robust regression analysis of clustering observations by firm
| Discretionary Bonus (1) | Discretionary Bonus Weight (2) | |
|---|---|---|
| Intercept | −2.321*** | 0.079 |
| (0.010) | (0.423) | |
| Big4it | −0.51** | −0.041** |
| (0.038) | (0.029) | |
| Earning Predict CFit | −0.845** | −0.029* |
| (0.023) | (0.086) | |
| Abnormal Accrualsit | 2.187*** | 0.123** |
| (0.007) | (0.014) | |
| ROA Volatilityit | −3.769 | −0.165 |
| (0.188) | (0.126) | |
| Return Volatilityit | 3.655** | 0.254*** |
| (0.021) | (0.006) | |
| CEO Tenureit | 0.064*** | 0.003*** |
| (<0.001) | (<0.001) | |
| CEO Dualityit | −0.3* | −0.015* |
| (0.070) | (0.054) | |
| R&D to Salesit | 0.067** | 0.000*** |
| (0.016) | (0.001) | |
| B/M Ratioit | 0.035 | 0.004 |
| (0.576) | (0.531) | |
| Lossit | 0.295 | 0.015 |
| (0.108) | (0.147) | |
| Sizeit | −0.07 | 0.004 |
| (0.328) | (0.331) | |
| Leverageit | −1.012** | −0.021 |
| (0.037) | (0.325) | |
| Annual Returnit | 0.075 | 0.006 |
| (0.104) | (0.079) | |
| ROAit | 0.849 | 0.085* |
| (0.244) | (0.084) | |
| Year indicators | Yes | Yes |
| Industry indicators | Yes | Yes |
| Number of observations | 7,541 | 7,541 |
| R2 or Pseudo R2 | 0.152 | 0.100 |
| −2.321*** | 0.079 | |
| (0.010) | (0.423) | |
| −0.51** | −0.041** | |
| (0.038) | (0.029) | |
| −0.845** | −0.029* | |
| (0.023) | (0.086) | |
| 2.187*** | 0.123** | |
| (0.007) | (0.014) | |
| −3.769 | −0.165 | |
| (0.188) | (0.126) | |
| 3.655** | 0.254*** | |
| (0.021) | (0.006) | |
| 0.064*** | 0.003*** | |
| (<0.001) | (<0.001) | |
| −0.3* | −0.015* | |
| (0.070) | (0.054) | |
| 0.067** | 0.000*** | |
| (0.016) | (0.001) | |
| 0.035 | 0.004 | |
| (0.576) | (0.531) | |
| 0.295 | 0.015 | |
| (0.108) | (0.147) | |
| −0.07 | 0.004 | |
| (0.328) | (0.331) | |
| −1.012** | −0.021 | |
| (0.037) | (0.325) | |
| 0.075 | 0.006 | |
| (0.104) | (0.079) | |
| 0.849 | 0.085* | |
| (0.244) | (0.084) | |
| Year indicators | Yes | Yes |
| Industry indicators | Yes | Yes |
| Number of observations | 7,541 | 7,541 |
| 0.152 | 0.100 |
Note(s): Presented in Table 9 are the findings for regression analysis using cluster-robust standard errors. The regressions are clustered by firm. Presented in Column 1 are the results of logit regressions; presented in Column 2 are the results for OLS regressions. *, **, and *** indicate that the estimated coefficients are statistically significant at the 0.1, 0.05, and 0.01 level, respectively. P-values in brackets are from Wald tests of logit regressions and two-tailed t-tests of OLS regressions. The regressions control for year and 2-digit SIC code industry effects. All variables are defined in Appendix
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