Regression results (for H1a and H1b)
| H1a | H1b | |||
|---|---|---|---|---|
| (1) | (2) | (3) | (4) | |
| Variables | Model 1 | Model 2 | Model 3 | Model 4 |
| NumKAM | NumKAM | WordKAM | WordKAM | |
| lnProx_KM | −0.041** (0.020) | −0.034* (0.022) | ||
| lnProx_Min | −0.054** (0.023) | −0.054** (0.026) | ||
| Chair_Gen | −0.032 (0.061) | −0.035 (0.061) | −0.086 (0.067) | −0.088 (0.067) |
| IDR | −0.162 (0.232) | −0.171 (0.232) | −0.289 (0.257) | −0.307 (0.256) |
| FD_Ratio | 0.351** (0.156) | 0.366** (0.156) | 0.381** (0.174) | 0.397** (0.174) |
| lnAC_Size | −0.131* (0.079) | −0.126 (0.079) | −0.097 (0.088) | −0.093 (0.088) |
| lnARL | 0.062 (0.065) | 0.065 (0.065) | 0.050 (0.072) | 0.054 (0.072) |
| BIG4 | 0.045 (0.046) | 0.046 (0.046) | 0.041 (0.051) | 0.044 (0.051) |
| Audit_Ten | 0.072** (0.028) | 0.073*** (0.028) | 0.058* (0.031) | 0.059* (0.031) |
| lnAudit_Fee | 0.011 (0.031) | 0.012 (0.031) | 0.025 (0.034) | 0.026 (0.034) |
| lnFirm_Size | 0.034 (0.021) | 0.033 (0.021) | 0.058** (0.024) | 0.057** (0.024) |
| lnFirm_Age | 0.100* (0.052) | 0.103** (0.052) | 0.094 (0.058) | 0.098* (0.058) |
| ROA | −0.414 (0.542) | −0.419 (0.541) | −0.930 (0.605) | −0.932 (0.604) |
| YearEndDec31 | 0.352** (0.148) | 0.354** (0.148) | 0.116 (0.164) | 0.117 (0.164) |
| Constant | −0.264 (0.556) | −0.374 (0.561) | 4.982*** (0.620) | 4.854*** (0.624) |
| Observations | 465 | 465 | 465 | 465 |
| Adj. R-squared | 0.184 | 0.186 | 0.158 | 0.162 |
| Year FE | Yes | Yes | Yes | Yes |
| Industry FE | Yes | Yes | Yes | Yes |
| Prob > F | 0.00 | 0.00 | 0.00 | 0.00 |
| (1) | (2) | (3) | (4) | |
|---|---|---|---|---|
| Variables | Model 1 | Model 2 | Model 3 | Model 4 |
| NumKAM | NumKAM | WordKAM | WordKAM | |
| lnProx_KM | −0.041 | −0.034 | ||
| lnProx_Min | −0.054 | −0.054 | ||
| Chair_Gen | −0.032 (0.061) | −0.035 (0.061) | −0.086 (0.067) | −0.088 (0.067) |
| −0.162 (0.232) | −0.171 (0.232) | −0.289 (0.257) | −0.307 (0.256) | |
| FD_Ratio | 0.351 | 0.366 | 0.381 | 0.397 |
| lnAC_Size | −0.131 | −0.126 (0.079) | −0.097 (0.088) | −0.093 (0.088) |
| lnARL | 0.062 (0.065) | 0.065 (0.065) | 0.050 (0.072) | 0.054 (0.072) |
| BIG4 | 0.045 (0.046) | 0.046 (0.046) | 0.041 (0.051) | 0.044 (0.051) |
| Audit_Ten | 0.072 | 0.073 | 0.058 | 0.059 |
| lnAudit_Fee | 0.011 (0.031) | 0.012 (0.031) | 0.025 (0.034) | 0.026 (0.034) |
| lnFirm_Size | 0.034 (0.021) | 0.033 (0.021) | 0.058 | 0.057 |
| lnFirm_Age | 0.100 | 0.103 | 0.094 (0.058) | 0.098 |
| −0.414 (0.542) | −0.419 (0.541) | −0.930 (0.605) | −0.932 (0.604) | |
| YearEndDec31 | 0.352 | 0.354 | 0.116 (0.164) | 0.117 (0.164) |
| Constant | −0.264 (0.556) | −0.374 (0.561) | 4.982 | 4.854 |
| Observations | 465 | 465 | 465 | 465 |
| Adj. | 0.184 | 0.186 | 0.158 | 0.162 |
| Year | Yes | Yes | Yes | Yes |
| Industry | Yes | Yes | Yes | Yes |
| Prob > | 0.00 | 0.00 | 0.00 | 0.00 |
This table reports the baseline regression results showing the impact of auditor−client geographic proximity on KAMs disclosures. Variable definitions are provided in Table 2. ***p < 0.01, **p < 0.05, *p < 0.10. Standard errors are reported in parentheses
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