Table 7. Regression result for AC expert...

Table 7.

Regression result for AC expert vs non-AC expert firms

Variables	Non-AC expert firms				AC expert 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	−0.022 (0.026)		0.005 (0.028)		−0.062* (0.036)		−0.064* (0.038)
lnProx_Min		−0.033 (0.032)		−0.010 (0.034)		−0.074** (0.039)		−0.078** (0.042)
Constant	−0.558 (0.799)	−0.623 (0.803)	4.076*** (0.869)	4.041*** (0.874)	0.602 (1.041)	0.401 (1.059)	6.384*** (1.119)	6.173*** (1.138)
Observation	284	284	284	284	181	181	181	181
Adjusted R²	0.187	0.188	0.204	0.204	0.143	0.145	0.141	0.143
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	Non-AC expert firms				AC expert 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	−0.022 (0.026)		0.005 (0.028)		−0.062* (0.036)		−0.064* (0.038)
lnProx_Min		−0.033 (0.032)		−0.010 (0.034)		−0.074** (0.039)		−0.078** (0.042)
Constant	−0.558 (0.799)	−0.623 (0.803)	4.076*** (0.869)	4.041*** (0.874)	0.602 (1.041)	0.401 (1.059)	6.384*** (1.119)	6.173*** (1.138)
Observation	284	284	284	284	181	181	181	181
Adjusted R²	0.187	0.188	0.204	0.204	0.143	0.145	0.141	0.143
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

Note(s):

This table reports the cross-sectional results showing the impact of auditor−client geographic proximity on KAMs disclosures between audit committee (AC) expert vs AC non-expert firms. Variable definitions are provided in Table 2. ***p < 0.01, **p < 0.05, *p < 0.10. Standard errors are reported in parentheses

Source(s): Authors’ own calculations

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