OLS and fixed-effects results using real earnings management
| Variables | OLS | Panel – Fixed effect | ||||||
|---|---|---|---|---|---|---|---|---|
| (39) | (40) | (41) | (42) | (43) | (44) | (45) | (46) | |
| AvgID_Total | −0.101*** | 0.007 | ||||||
| (−2.67) | (0.56) | |||||||
| AvgID_Inside | −0.069*** | −0.069*** | 0.000 | 0.000 | ||||
| (−2.65) | (−2.67) | (0.06) | (0.05) | |||||
| AvgID_Outside | −0.059* | −0.061* | 0.002 | 0.002 | ||||
| (−1.88) | (−1.93) | (0.32) | (0.32) | |||||
| SIZE | 0.023*** | 0.022*** | 0.022*** | 0.025*** | 0.013 | 0.013 | 0.013 | 0.013 |
| (2.80) | (2.75) | (2.84) | (3.08) | (0.89) | (0.90) | (0.89) | (0.89) | |
| LEV | 0.070 | 0.070 | 0.079 | 0.068 | −0.004 | −0.004 | −0.004 | −0.004 |
| (1.41) | (1.41) | (1.62) | (1.38) | (−0.11) | (−0.12) | (−0.12) | (−0.12) | |
| CFOt-1 | −1.540*** | −1.546*** | −1.542*** | −1.541*** | −1.369*** | −1.369*** | −1.369*** | −1.369*** |
| (−14.79) | (−14.82) | (−14.70) | (−14.76) | (−29.88) | (−29.87) | (−29.87) | (−29.87) | |
| MB | −0.017*** | −0.017*** | −0.016** | −0.017*** | −0.001 | −0.001 | −0.001 | −0.001 |
| (−2.59) | (−2.61) | (−2.50) | (−2.62) | (−0.54) | (−0.54) | (−0.54) | (−0.54) | |
| ROAt-1 | 0.128 | 0.122 | 0.136 | 0.124 | −0.032 | −0.033 | −0.033 | −0.033 |
| (1.35) | (1.30) | (1.42) | (1.32) | (−0.74) | (−0.74) | (−0.75) | (−0.74) | |
| PPEt-1 | 0.035 | 0.037 | 0.026 | 0.035 | −0.014 | −0.013 | −0.013 | −0.013 |
| (0.71) | (0.74) | (0.54) | (0.71) | (−0.53) | (−0.51) | (−0.51) | (−0.51) | |
| INTANt-1 | −1.574*** | −1.583*** | −1.593*** | −1.573*** | −0.541*** | −0.543*** | −0.544*** | −0.544*** |
| (−4.56) | (−4.60) | (−4.57) | (−4.60) | (−2.65) | (−2.65) | (−2.66) | (−2.66) | |
| OWN | 0.054 | 0.058 | 0.029 | 0.059 | 0.050 | 0.051 | 0.051 | 0.051 |
| (0.85) | (0.89) | (0.43) | (0.91) | (1.05) | (1.06) | (1.07) | (1.06) | |
| FOR | −0.295*** | −0.293*** | −0.298*** | −0.298*** | −0.073 | −0.074 | −0.074 | −0.074 |
| (−2.96) | (−2.96) | (−2.92) | (−3.02) | (−1.41) | (−1.42) | (−1.42) | (−1.42) | |
| AGE | 0.003 | 0.003 | 0.001 | 0.003 | −0.006 | −0.006 | −0.006 | −0.006 |
| (0.21) | (0.21) | (0.10) | (0.23) | (−0.41) | (−0.38) | (−0.39) | (−0.39) | |
| LOSS | −0.020 | −0.020 | −0.017 | −0.020 | 0.016*** | 0.016*** | 0.016*** | 0.016*** |
| (−1.37) | (−1.36) | (−1.19) | (−1.39) | (3.79) | (3.79) | (3.80) | (3.79) | |
| BIG4 | −0.027 | −0.028 | −0.030 | −0.027 | ||||
| (−1.40) | (−1.44) | (−1.54) | (−1.42) | |||||
| N | 3,195 | 3,195 | 3,195 | 3,195 | 3,195 | 3,195 | 3,195 | 3,195 |
| Fixed Effects | ||||||||
| Year | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Industry | Yes | Yes | Yes | Yes | No | No | No | No |
| Firm | No | No | No | No | Yes | Yes | Yes | Yes |
| Adj R2 | 0.24 | 0.24 | 0.23 | 0.24 | – | – | – | – |
| within R2 | – | – | – | – | 0.56 | 0.56 | 0.56 | 0.56 |
| F-Statistics | 16.68*** | 16.72*** | 16.99*** | 16.08*** | 64.07*** | 63.88*** | 63.94*** | 60.40*** |
| Variables | OLS | Panel – Fixed effect | ||||||
|---|---|---|---|---|---|---|---|---|
| (39) | (40) | (41) | (42) | (43) | (44) | (45) | (46) | |
| AvgID_Total | −0.101*** | 0.007 | ||||||
| (−2.67) | (0.56) | |||||||
| AvgID_Inside | −0.069*** | −0.069*** | 0.000 | 0.000 | ||||
| (−2.65) | (−2.67) | (0.06) | (0.05) | |||||
| AvgID_Outside | −0.059* | −0.061* | 0.002 | 0.002 | ||||
| (−1.88) | (−1.93) | (0.32) | (0.32) | |||||
| SIZE | 0.023*** | 0.022*** | 0.022*** | 0.025*** | 0.013 | 0.013 | 0.013 | 0.013 |
| (2.80) | (2.75) | (2.84) | (3.08) | (0.89) | (0.90) | (0.89) | (0.89) | |
| LEV | 0.070 | 0.070 | 0.079 | 0.068 | −0.004 | −0.004 | −0.004 | −0.004 |
| (1.41) | (1.41) | (1.62) | (1.38) | (−0.11) | (−0.12) | (−0.12) | (−0.12) | |
| CFOt-1 | −1.540*** | −1.546*** | −1.542*** | −1.541*** | −1.369*** | −1.369*** | −1.369*** | −1.369*** |
| (−14.79) | (−14.82) | (−14.70) | (−14.76) | (−29.88) | (−29.87) | (−29.87) | (−29.87) | |
| MB | −0.017*** | −0.017*** | −0.016** | −0.017*** | −0.001 | −0.001 | −0.001 | −0.001 |
| (−2.59) | (−2.61) | (−2.50) | (−2.62) | (−0.54) | (−0.54) | (−0.54) | (−0.54) | |
| ROAt-1 | 0.128 | 0.122 | 0.136 | 0.124 | −0.032 | −0.033 | −0.033 | −0.033 |
| (1.35) | (1.30) | (1.42) | (1.32) | (−0.74) | (−0.74) | (−0.75) | (−0.74) | |
| PPEt-1 | 0.035 | 0.037 | 0.026 | 0.035 | −0.014 | −0.013 | −0.013 | −0.013 |
| (0.71) | (0.74) | (0.54) | (0.71) | (−0.53) | (−0.51) | (−0.51) | (−0.51) | |
| INTANt-1 | −1.574*** | −1.583*** | −1.593*** | −1.573*** | −0.541*** | −0.543*** | −0.544*** | −0.544*** |
| (−4.56) | (−4.60) | (−4.57) | (−4.60) | (−2.65) | (−2.65) | (−2.66) | (−2.66) | |
| OWN | 0.054 | 0.058 | 0.029 | 0.059 | 0.050 | 0.051 | 0.051 | 0.051 |
| (0.85) | (0.89) | (0.43) | (0.91) | (1.05) | (1.06) | (1.07) | (1.06) | |
| FOR | −0.295*** | −0.293*** | −0.298*** | −0.298*** | −0.073 | −0.074 | −0.074 | −0.074 |
| (−2.96) | (−2.96) | (−2.92) | (−3.02) | (−1.41) | (−1.42) | (−1.42) | (−1.42) | |
| AGE | 0.003 | 0.003 | 0.001 | 0.003 | −0.006 | −0.006 | −0.006 | −0.006 |
| (0.21) | (0.21) | (0.10) | (0.23) | (−0.41) | (−0.38) | (−0.39) | (−0.39) | |
| LOSS | −0.020 | −0.020 | −0.017 | −0.020 | 0.016*** | 0.016*** | 0.016*** | 0.016*** |
| (−1.37) | (−1.36) | (−1.19) | (−1.39) | (3.79) | (3.79) | (3.80) | (3.79) | |
| BIG4 | −0.027 | −0.028 | −0.030 | −0.027 | ||||
| (−1.40) | (−1.44) | (−1.54) | (−1.42) | |||||
| 3,195 | 3,195 | 3,195 | 3,195 | 3,195 | 3,195 | 3,195 | 3,195 | |
| Year | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Industry | Yes | Yes | Yes | Yes | No | No | No | No |
| Firm | No | No | No | No | Yes | Yes | Yes | Yes |
| Adj | 0.24 | 0.24 | 0.23 | 0.24 | – | – | – | – |
| within | – | – | – | – | 0.56 | 0.56 | 0.56 | 0.56 |
| F-Statistics | 16.68*** | 16.72*** | 16.99*** | 16.08*** | 64.07*** | 63.88*** | 63.94*** | 60.40*** |
Note(s): Standard errors are clustered at the firm level
*, **, and *** indicate statistical significance at the 10%, 5%, and 1% levels, respectively
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