Note(s): This table presents the logit regression results of the sample data partitioned into two subsamples depending on whether market to book ratio is above or below the sample median. Columns 1 and 3 present regression results of the observations with the market to book ratio below the sample median. Columns 2 and 4 present regression results of the observations with the market to book ratio above the sample median

In Columns 1 and 2, the independent variable Accounting Quality1 is a composite measure, which is the average of standardized Big4, standardized Earning Predict CF, and the opposite of standardized Abnormal Accruals. In Columns 3 and 4, Accounting Quality2 is also a composite measure, which is the average of the three ranks scaled by the number of observations: the rank in Big4, the rank in Earning Predict CF, and the rank in Abnormal Accruals (in decreasing order). All other variables are defined in Appendix. *, **, and *** indicate that the estimated coefficients are statistically significant at the 0.10, 0.05, and 0.01% level, respectively. P-values in brackets are from two-tailed t-tests