Table 8 Audit committee centrality and...

Table 8

Audit committee centrality and audit opinion in ordered probit model

	DEG	EIGEN	BET	CLOS	PCA	N-SCORE
CENTRALITY	−0.162**	−0.153**	−0.0629	0.0499	−0.0725	−0.119
CENTRALITY	(0.0716)	(0.0753)	(0.0464)	(0.0518)	(0.0443)	(0.0946)
SIZE	0.192***	0.182***	0.163***	0.162***	0.179***	0.171***
SIZE	(0.0574)	(0.0565)	(0.0571)	(0.0570)	(0.0569)	(0.0560)
LEV	−0.729**	−0.687**	−0.745**	−0.753**	−0.712**	−0.681*
LEV	(0.354)	(0.348)	(0.359)	(0.347)	(0.356)	(0.352)
ROA	1.090	1.043	1.145	1.046	1.164	1.092
ROA	(1.141)	(1.135)	(1.140)	(1.128)	(1.139)	(1.141)
EXP	−0.133	−0.0718	−0.131	−0.150	−0.110	−0.108
EXP	(0.238)	(0.243)	(0.237)	(0.241)	(0.241)	(0.239)
RECEI	1.229**	1.190**	1.174**	1.193**	1.185**	1.193**
RECEI	(0.510)	(0.518)	(0.522)	(0.517)	(0.520)	(0.524)
LOSS	0.180	0.191	0.187	0.189	0.187	0.180
LOSS	(0.147)	(0.148)	(0.147)	(0.147)	(0.147)	(0.147)
LOSS_t−1	0.0799	0.0800	0.0816	0.0646	0.0902	0.0936
LOSS_t−1	(0.135)	(0.133)	(0.132)	(0.131)	(0.135)	(0.133)
CLEAN_t−1	−1.583***	−1.565***	−1.588***	−1.587***	−1.584***	−1.580***
CLEAN_t−1	(0.124)	(0.124)	(0.125)	(0.124)	(0.125)	(0.126)
AC_SIZE	−0.00558	−0.00746	−0.0221	−0.0129	−0.0152	−0.0184
AC_SIZE	(0.0249)	(0.0249)	(0.0248)	(0.0248)	(0.0247)	(0.0249)
AC_MEET	−0.000556	−0.00151	−0.00299	−0.00169	−0.00261	−0.00200
AC_MEET	(0.0262)	(0.0258)	(0.0256)	(0.0255)	(0.0257)	(0.0256)
B_MEET	0.0233	0.0239	0.0254	0.0256	0.0242	0.0248
B_MEET	(0.0164)	(0.0163)	(0.0162)	(0.0163)	(0.0162)	(0.0162)
B_INDEP	−0.729***	−0.612***	−0.621***	−0.613***	−0.649***	−0.644***
B_INDEP	(0.233)	(0.228)	(0.225)	(0.224)	(0.226)	(0.226)
BIG4	−0.541***	−0.535***	−0.548***	−0.539***	−0.548***	−0.536***
BIG4	(0.161)	(0.160)	(0.162)	(0.163)	(0.160)	(0.157)
AF_t−1	0.00465	−0.00252	−0.00154	−0.00649	0.00205	−0.00481
AF_t−1	(0.0521)	(0.0509)	(0.0513)	(0.0510)	(0.0515)	(0.0511)
RLAW	−0.344***	−0.322***	−0.353***	−0.354***	−0.339***	−0.339***
RLAW	(0.121)	(0.123)	(0.121)	(0.121)	(0.121)	(0.120)
REST_LINKS	0.00406	0.00403	0.000956	0.00338	0.00133	0.00173
REST_LINKS	(0.0355)	(0.0352)	(0.0350)	(0.0345)	(0.0352)	(0.0352)
LINKS_TOTAL	0.0491	0.0286	0.0393	0.0135	0.0483	0.0393
LINKS_TOTAL	(0.0323)	(0.0294)	(0.0323)	(0.0300)	(0.0328)	(0.0315)
Observations	1,798	1,798	1,798	1,798	1,798	1,798
Pseudo R2	0.3752	0.3752	0.3732	0.3732	0.3740	0.3737

	DEG	EIGEN	BET	CLOS	PCA	N-SCORE
CENTRALITY	−0.162**	−0.153**	−0.0629	0.0499	−0.0725	−0.119
CENTRALITY	(0.0716)	(0.0753)	(0.0464)	(0.0518)	(0.0443)	(0.0946)
SIZE	0.192***	0.182***	0.163***	0.162***	0.179***	0.171***
SIZE	(0.0574)	(0.0565)	(0.0571)	(0.0570)	(0.0569)	(0.0560)
LEV	−0.729**	−0.687**	−0.745**	−0.753**	−0.712**	−0.681*
LEV	(0.354)	(0.348)	(0.359)	(0.347)	(0.356)	(0.352)
ROA	1.090	1.043	1.145	1.046	1.164	1.092
ROA	(1.141)	(1.135)	(1.140)	(1.128)	(1.139)	(1.141)
EXP	−0.133	−0.0718	−0.131	−0.150	−0.110	−0.108
EXP	(0.238)	(0.243)	(0.237)	(0.241)	(0.241)	(0.239)
RECEI	1.229**	1.190**	1.174**	1.193**	1.185**	1.193**
RECEI	(0.510)	(0.518)	(0.522)	(0.517)	(0.520)	(0.524)
LOSS	0.180	0.191	0.187	0.189	0.187	0.180
LOSS	(0.147)	(0.148)	(0.147)	(0.147)	(0.147)	(0.147)
LOSS_t−1	0.0799	0.0800	0.0816	0.0646	0.0902	0.0936
LOSS_t−1	(0.135)	(0.133)	(0.132)	(0.131)	(0.135)	(0.133)
CLEAN_t−1	−1.583***	−1.565***	−1.588***	−1.587***	−1.584***	−1.580***
CLEAN_t−1	(0.124)	(0.124)	(0.125)	(0.124)	(0.125)	(0.126)
AC_SIZE	−0.00558	−0.00746	−0.0221	−0.0129	−0.0152	−0.0184
AC_SIZE	(0.0249)	(0.0249)	(0.0248)	(0.0248)	(0.0247)	(0.0249)
AC_MEET	−0.000556	−0.00151	−0.00299	−0.00169	−0.00261	−0.00200
AC_MEET	(0.0262)	(0.0258)	(0.0256)	(0.0255)	(0.0257)	(0.0256)
B_MEET	0.0233	0.0239	0.0254	0.0256	0.0242	0.0248
B_MEET	(0.0164)	(0.0163)	(0.0162)	(0.0163)	(0.0162)	(0.0162)
B_INDEP	−0.729***	−0.612***	−0.621***	−0.613***	−0.649***	−0.644***
B_INDEP	(0.233)	(0.228)	(0.225)	(0.224)	(0.226)	(0.226)
BIG4	−0.541***	−0.535***	−0.548***	−0.539***	−0.548***	−0.536***
BIG4	(0.161)	(0.160)	(0.162)	(0.163)	(0.160)	(0.157)
AF_t−1	0.00465	−0.00252	−0.00154	−0.00649	0.00205	−0.00481
AF_t−1	(0.0521)	(0.0509)	(0.0513)	(0.0510)	(0.0515)	(0.0511)
RLAW	−0.344***	−0.322***	−0.353***	−0.354***	−0.339***	−0.339***
RLAW	(0.121)	(0.123)	(0.121)	(0.121)	(0.121)	(0.120)
REST_LINKS	0.00406	0.00403	0.000956	0.00338	0.00133	0.00173
REST_LINKS	(0.0355)	(0.0352)	(0.0350)	(0.0345)	(0.0352)	(0.0352)
LINKS_TOTAL	0.0491	0.0286	0.0393	0.0135	0.0483	0.0393
LINKS_TOTAL	(0.0323)	(0.0294)	(0.0323)	(0.0300)	(0.0328)	(0.0315)
Observations	1,798	1,798	1,798	1,798	1,798	1,798
Pseudo R2	0.3752	0.3752	0.3732	0.3732	0.3740	0.3737

Note(s): Estimated coefficients (std. errors) using the logit regression of equation (3). The dependent variable is OPINION_CAT in all the regressions. The first row indicates the centrality measure used. All the estimations include year and industry-fixed effects and clustering by firm. See Appendix I for the definition of the variables. ***, **, * for 1%, 5% and 10% significance level

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