Table 12.

Regression result for highly risky firms

(1)(2)(3)(4)
VariablesHigh leverageHigh leverageDistressDistress
lnProx_KM−0.037 (0.052)−0.519 (0.351)
lnProx_Min−0.034 (0.062)−0.627 (0.399)
Constant3.733** (1.189)3.691** (1.504)21.187 (7.612)18.810 (6.961)
Observation465465465465
Adjusted R20.1090.1080.1030.887
ControlsYesYesYesYes
Year FEYesYesYesYes
Industry FEYesYesYesYes
Prob > F0.0000.0000.0000.000
Note(s):

This table reports the regression results showing the impact of auditor−client geographic proximity on KAMs disclosures only for highly risky and distressed 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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