Table 6 OLS and fixed-effects results –...

Table 6

OLS and fixed-effects results – Kothari-based earnings management

Variables	Baseline		Expanded		KOSDAQ
	OLS	FE	OLS	FE	OLS	FE
	(25)	(26)	(27)	(28)	(29)	(30)
AvgID_Total	0.015***	0.017**	0.014***	0.018**	0.014***	0.019***
AvgID_Total	(4.21)	(2.28)	(4.56)	(2.38)	(5.15)	(3.06)
AvgID_Inside	0.009***	0.006	0.009***	0.007	0.008***	0.008*
AvgID_Inside	(3.93)	(1.14)	(4.68)	(1.37)	(4.63)	(1.69)
AvgID_Outside	0.010**	0.012**	0.008**	0.012**	0.008***	0.012**
AvgID_Outside	(2.55)	(2.07)	(2.28)	(2.30)	(2.82)	(2.57)
Controls	Include	Include	Include	Include	Include	Include
N	3,195	3,195	3,195	3,195	3,195	3,195
Adj. R²	0.09	–	0.09	–	0.09	–
within R2	–	0.03	–	0.03	–	0.03
Firm FE	No	Yes	No	Yes	No	Yes
Industry	Yes	No	Yes	No	Yes	No
Year	Yes	Yes	Yes	Yes	Yes	Yes

Variables	Baseline		Expanded		KOSDAQ
	OLS	FE	OLS	FE	OLS	FE
	(25)	(26)	(27)	(28)	(29)	(30)
AvgID_Total	0.015***	0.017**	0.014***	0.018**	0.014***	0.019***
AvgID_Total	(4.21)	(2.28)	(4.56)	(2.38)	(5.15)	(3.06)
AvgID_Inside	0.009***	0.006	0.009***	0.007	0.008***	0.008*
AvgID_Inside	(3.93)	(1.14)	(4.68)	(1.37)	(4.63)	(1.69)
AvgID_Outside	0.010**	0.012**	0.008**	0.012**	0.008***	0.012**
AvgID_Outside	(2.55)	(2.07)	(2.28)	(2.30)	(2.82)	(2.57)
Controls	Include	Include	Include	Include	Include	Include
N	3,195	3,195	3,195	3,195	3,195	3,195
Adj. R²	0.09	–	0.09	–	0.09	–
within R2	–	0.03	–	0.03	–	0.03
Firm FE	No	Yes	No	Yes	No	Yes
Industry	Yes	No	Yes	No	Yes	No
Year	Yes	Yes	Yes	Yes	Yes	Yes

Note(s): Standard errors are clustered at the firm level

For brevity, this table reports only the coefficients on the main interlock variables. Full regression results including all control variables are reported in Appendix Tables A2–A4

*, **, and *** indicate statistical significance at the 10%, 5%, and 1% levels, respectively

Source(s): Table by author

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