Table 7 OLS results using signed...

Table 7

OLS results using signed earnings management

Variables	Negative DA				Positive DA
Variables	(31)	(32)	(33)	(34)	(35)	(36)	(37)	(38)
AvgID_Total	−0.020***				0.014***
AvgID_Total	(−3.27)				(2.83)
AvgID_Inside		−0.012***		−0.012***		0.009***		0.009***
AvgID_Inside		(−3.16)		(−3.26)		(3.11)		(3.09)
AvgID_Outside			−0.010*	−0.011*			0.007	0.007
AvgID_Outside			(−1.72)	(−1.89)			(0.91)	(0.88)
SIZE	0.003**	0.003**	0.003**	0.003***	0.000	0.001	0.001	0.000
SIZE	(2.53)	(2.34)	(2.20)	(2.74)	(0.23)	(0.32)	(0.33)	(0.13)
LEV	−0.033***	−0.033***	−0.031***	−0.033***	−0.008	−0.009	−0.009	−0.008
LEV	(−4.20)	(−4.18)	(−4.00)	(−4.20)	(−1.12)	(−1.15)	(−1.22)	(−1.13)
CFO_t-1	−0.531***	−0.532***	−0.532***	−0.531***	−0.377***	−0.377***	−0.377***	−0.377***
CFO_t-1	(−19.77)	(−19.78)	(−19.73)	(−19.78)	(−2.93)	(−2.93)	(−2.94)	(−2.93)
MB	−0.003***	−0.004***	−0.003***	−0.004***	0.002***	0.003***	0.002***	0.003***
MB	(−4.84)	(−4.85)	(−4.71)	(−4.89)	(2.94)	(2.99)	(2.83)	(2.98)
ROA_t-1	0.268***	0.267***	0.274***	0.266***	0.101***	0.101***	0.102***	0.101***
ROA_t-1	(11.69)	(11.62)	(11.95)	(11.62)	(3.64)	(3.65)	(3.66)	(3.64)
PPE_t-1	0.069***	0.069***	0.068***	0.069***	−0.005	−0.006	−0.005	−0.005
PPE_t-1	(9.12)	(9.15)	(8.95)	(9.14)	(−0.40)	(−0.42)	(−0.35)	(−0.40)
INTAN_t-1	−0.061*	−0.061*	−0.062*	−0.061*	−0.047	−0.044	−0.043	−0.045
INTAN_t-1	(−1.70)	(−1.70)	(−1.72)	(−1.70)	(−1.10)	(−1.05)	(−1.00)	(−1.06)
OWN	0.049***	0.049***	0.045***	0.050***	−0.013	−0.013	−0.009	−0.013
OWN	(5.53)	(5.54)	(5.12)	(5.56)	(−0.61)	(−0.63)	(−0.42)	(−0.63)
FOR	0.036**	0.036***	0.035**	0.035**	−0.009	−0.010	−0.010	−0.009
FOR	(2.57)	(2.60)	(2.50)	(2.54)	(−0.33)	(−0.35)	(−0.36)	(−0.32)
AGE	0.000	0.000	0.000	0.000	−0.004	−0.004	−0.004	−0.004
AGE	(0.08)	(0.09)	(0.03)	(0.09)	(−1.53)	(−1.54)	(−1.45)	(−1.54)
LOSS	−0.042***	−0.042***	−0.041***	−0.042***	−0.027***	−0.027***	−0.027***	−0.027***
LOSS	(−11.85)	(−11.82)	(−11.70)	(−11.88)	(−3.22)	(−3.22)	(−3.24)	(−3.23)
BIG4	0.000	0.000	0.001	0.000	0.002	0.002	0.003	0.002
BIG4	(0.12)	(0.13)	(0.19)	(0.07)	(0.67)	(0.72)	(0.79)	(0.67)
N	1,576	1,576	1,576	1,576	1,619	1,619	1,619	1,619
Fixed Effects
Year	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Industry	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Firm	No	No	No	No	No	No	No	No
Adj R2	0.34	0.34	0.34	0.34	0.09	0.09	0.08	0.07
F-Statistics	36.87***	36.83***	36.36***	35.50***	10.71***	10.77***	10.66***	10.53***

Variables	Negative DA				Positive DA
Variables	(31)	(32)	(33)	(34)	(35)	(36)	(37)	(38)
AvgID_Total	−0.020***				0.014***
AvgID_Total	(−3.27)				(2.83)
AvgID_Inside		−0.012***		−0.012***		0.009***		0.009***
AvgID_Inside		(−3.16)		(−3.26)		(3.11)		(3.09)
AvgID_Outside			−0.010*	−0.011*			0.007	0.007
AvgID_Outside			(−1.72)	(−1.89)			(0.91)	(0.88)
SIZE	0.003**	0.003**	0.003**	0.003***	0.000	0.001	0.001	0.000
SIZE	(2.53)	(2.34)	(2.20)	(2.74)	(0.23)	(0.32)	(0.33)	(0.13)
LEV	−0.033***	−0.033***	−0.031***	−0.033***	−0.008	−0.009	−0.009	−0.008
LEV	(−4.20)	(−4.18)	(−4.00)	(−4.20)	(−1.12)	(−1.15)	(−1.22)	(−1.13)
CFO_t-1	−0.531***	−0.532***	−0.532***	−0.531***	−0.377***	−0.377***	−0.377***	−0.377***
CFO_t-1	(−19.77)	(−19.78)	(−19.73)	(−19.78)	(−2.93)	(−2.93)	(−2.94)	(−2.93)
MB	−0.003***	−0.004***	−0.003***	−0.004***	0.002***	0.003***	0.002***	0.003***
MB	(−4.84)	(−4.85)	(−4.71)	(−4.89)	(2.94)	(2.99)	(2.83)	(2.98)
ROA_t-1	0.268***	0.267***	0.274***	0.266***	0.101***	0.101***	0.102***	0.101***
ROA_t-1	(11.69)	(11.62)	(11.95)	(11.62)	(3.64)	(3.65)	(3.66)	(3.64)
PPE_t-1	0.069***	0.069***	0.068***	0.069***	−0.005	−0.006	−0.005	−0.005
PPE_t-1	(9.12)	(9.15)	(8.95)	(9.14)	(−0.40)	(−0.42)	(−0.35)	(−0.40)
INTAN_t-1	−0.061*	−0.061*	−0.062*	−0.061*	−0.047	−0.044	−0.043	−0.045
INTAN_t-1	(−1.70)	(−1.70)	(−1.72)	(−1.70)	(−1.10)	(−1.05)	(−1.00)	(−1.06)
OWN	0.049***	0.049***	0.045***	0.050***	−0.013	−0.013	−0.009	−0.013
OWN	(5.53)	(5.54)	(5.12)	(5.56)	(−0.61)	(−0.63)	(−0.42)	(−0.63)
FOR	0.036**	0.036***	0.035**	0.035**	−0.009	−0.010	−0.010	−0.009
FOR	(2.57)	(2.60)	(2.50)	(2.54)	(−0.33)	(−0.35)	(−0.36)	(−0.32)
AGE	0.000	0.000	0.000	0.000	−0.004	−0.004	−0.004	−0.004
AGE	(0.08)	(0.09)	(0.03)	(0.09)	(−1.53)	(−1.54)	(−1.45)	(−1.54)
LOSS	−0.042***	−0.042***	−0.041***	−0.042***	−0.027***	−0.027***	−0.027***	−0.027***
LOSS	(−11.85)	(−11.82)	(−11.70)	(−11.88)	(−3.22)	(−3.22)	(−3.24)	(−3.23)
BIG4	0.000	0.000	0.001	0.000	0.002	0.002	0.003	0.002
BIG4	(0.12)	(0.13)	(0.19)	(0.07)	(0.67)	(0.72)	(0.79)	(0.67)
N	1,576	1,576	1,576	1,576	1,619	1,619	1,619	1,619
Fixed Effects
Year	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Industry	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Firm	No	No	No	No	No	No	No	No
Adj R2	0.34	0.34	0.34	0.34	0.09	0.09	0.08	0.07
F-Statistics	36.87***	36.83***	36.36***	35.50***	10.71***	10.77***	10.66***	10.53***

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

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

Source(s): Table by author

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