Regression result of high- vs low-risk firms (H3)
| Variables | Low-risk firms | High-risk firms | ||||||
|---|---|---|---|---|---|---|---|---|
| (1) | (2) | (3) | (4) | (1) | (2) | (3) | (4) | |
| NUM KAM | NUM KAM | WORD KAM | WORD KAM | NUM KAM | NUM KAM | WORD KAM | WORD KAM | |
| lnProx_KM | −0.067** (0.028) | −0.066* (0.034) | −0.043 (0.030) | −0.018 (0.032) | ||||
| lnProx_Min | −0.079** (0.031) | −0.084** (0.037) | −0.054 (0.037) | −0.032 (0.040) | ||||
| Constant | 0.404 (0.914) | 0.225 (0.922) | 5.7*** (1.092) | 5.46*** (1.102) | −0.50 (0.792) | −0.59 (0.794) | 4.6*** (0.835) | 4.55*** (0.836) |
| Observation | 233 | 233 | 233 | 233 | 232 | 232 | 232 | 232 |
| Adjusted R2 | 0.15 | 0.15 | 0.14 | 0.14 | 0.19 | 0.19 | 0.17 | 0.17 |
| Controls | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Year FE | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Industry FE | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Prob > F | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 |
| Variables | Low-risk firms | High-risk firms | ||||||
|---|---|---|---|---|---|---|---|---|
| (1) | (2) | (3) | (4) | (1) | (2) | (3) | (4) | |
| lnProx_KM | −0.067 | −0.066 | −0.043 (0.030) | −0.018 (0.032) | ||||
| lnProx_Min | −0.079 | −0.084 | −0.054 (0.037) | −0.032 (0.040) | ||||
| Constant | 0.404 (0.914) | 0.225 (0.922) | 5.7 | 5.46 | −0.50 (0.792) | −0.59 (0.794) | 4.6 | 4.55 |
| Observation | 233 | 233 | 233 | 233 | 232 | 232 | 232 | 232 |
| Adjusted | 0.15 | 0.15 | 0.14 | 0.14 | 0.19 | 0.19 | 0.17 | 0.17 |
| Controls | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Year | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Industry | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Prob > | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 |
This table reports the cross-sectional results showing the impact of auditor−client geographic proximity on KAMs disclosures between low- vs high-risk firms. 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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