Table 10 Audit committee centrality and...

Table 10

Audit committee centrality and audit opinion in ordered logit model by leverage

Split by	Low LEV	High LEV	Low LEV	High LEV	Low LEV	High LEV	Low LEV	High LEV	Low LEV	High LEV	Low LEV	High LEV
	DEG	DEG	EIGEN	EIGEN	BET	BET	CLOS	CLOS	PCA	PCA	N-SCORE	N-SCORE
CENTRALITY	−0.570**	−0.269	−0.790**	−0.371*	−0.407***	0.0848	−0.139	0.199	−0.432***	−0.0766	−0.891***	−0.0884
CENTRALITY	(0.244)	(0.183)	(0.312)	(0.196)	(0.132)	(0.139)	(0.106)	(0.128)	(0.146)	(0.125)	(0.296)	(0.270)
SIZE	0.133	0.616***	0.0781	0.600***	−0.0101	0.544***	0.0568	0.515***	0.0821	0.568***	0.0498	0.550***
SIZE	(0.167)	(0.168)	(0.157)	(0.165)	(0.159)	(0.165)	(0.157)	(0.169)	(0.162)	(0.172)	(0.154)	(0.169)
LEV	−1.187	0.166	−1.032	0.282	−1.288	0.255	−0.947	0.0944	−1.123	0.214	−0.994	0.231
LEV	(1.644)	(1.788)	(1.629)	(1.768)	(1.769)	(1.759)	(1.625)	(1.663)	(1.723)	(1.788)	(1.741)	(1.780)
ROA	4.673**	−0.823	4.406**	−0.942	4.106*	−0.813	4.624**	−0.955	4.398*	−0.537	4.402*	−0.625
ROA	(2.259)	(3.697)	(2.186)	(3.657)	(2.339)	(3.567)	(2.240)	(3.581)	(2.317)	(3.619)	(2.348)	(3.634)
EXP	−1.217**	0.0166	−1.069*	0.0522	−1.041*	−0.0499	−1.104*	−0.0571	−1.155*	−0.00331	−1.013*	−0.0193
EXP	(0.605)	(0.718)	(0.577)	(0.724)	(0.563)	(0.718)	(0.604)	(0.724)	(0.603)	(0.711)	(0.535)	(0.702)
RECEI	0.690	2.711**	0.509	2.734**	−0.139	2.830**	−0.198	2.733**	0.344	2.773**	0.409	2.792**
RECEI	(1.532)	(1.087)	(1.505)	(1.086)	(1.607)	(1.116)	(1.570)	(1.120)	(1.536)	(1.104)	(1.550)	(1.114)
LOSS	0.883**	−0.00734	0.887**	0.00734	0.843*	0.00829	0.892**	0.00507	0.851**	0.0174	0.815*	0.0114
LOSS	(0.432)	(0.435)	(0.437)	(0.442)	(0.431)	(0.437)	(0.427)	(0.436)	(0.434)	(0.436)	(0.443)	(0.437)
LOSS_t−1	−3.060***	−2.546***	−3.003***	−2.495***	−3.045***	−2.571***	−3.088***	−2.559***	−3.083***	−2.546***	−3.013***	−2.548***
LOSS_t−1	(0.348)	(0.286)	(0.355)	(0.282)	(0.357)	(0.286)	(0.359)	(0.285)	(0.356)	(0.290)	(0.357)	(0.291)
AC_SIZE	0.150*	−0.0550	0.132	−0.0605	0.104	−0.0477	0.124	−0.0527	0.129	−0.0727	0.0953	−0.0717
AC_SIZE	(0.0872)	(0.0681)	(0.0899)	(0.0666)	(0.0866)	(0.0766)	(0.0901)	(0.0656)	(0.0860)	(0.0690)	(0.0863)	(0.0721)
AC_MEET	−0.00347	0.0276	−0.00761	0.0290	−0.00510	0.0250	−0.0131	0.0292	−0.00255	0.0240	−0.00737	0.0253
AC_MEET	(0.0859)	(0.0547)	(0.0877)	(0.0524)	(0.0858)	(0.0525)	(0.0864)	(0.0522)	(0.0856)	(0.0529)	(0.0875)	(0.0525)
B_MEET	0.130***	0.000834	0.126**	0.000402	0.137***	−0.000964	0.144***	−0.00174	0.127***	0.00251	0.126**	0.00235
B_MEET	(0.0497)	(0.0381)	(0.0513)	(0.0384)	(0.0503)	(0.0366)	(0.0502)	(0.0375)	(0.0488)	(0.0374)	(0.0515)	(0.0374)
B_INDEP	−1.831**	−1.271*	−1.389**	−1.064	−1.168*	−1.293*	−1.225*	−1.276*	−1.463**	−1.270*	−1.382**	−1.298*
B_INDEP	(0.748)	(0.666)	(0.660)	(0.693)	(0.669)	(0.671)	(0.660)	(0.666)	(0.705)	(0.678)	(0.686)	(0.668)
BIG4	0.591	−1.623***	0.503	−1.590***	0.471	−1.596***	0.436	−1.524***	0.595	−1.616***	0.577	−1.595***
BIG4	(0.742)	(0.399)	(0.731)	(0.389)	(0.738)	(0.402)	(0.702)	(0.396)	(0.723)	(0.402)	(0.739)	(0.393)
AF_t−1	0.164	−0.0804	0.182	−0.0970	0.160	−0.0917	0.167	−0.109	0.171	−0.0828	0.152	−0.0908
AF_t−1	(0.136)	(0.141)	(0.134)	(0.140)	(0.144)	(0.142)	(0.136)	(0.142)	(0.140)	(0.140)	(0.138)	(0.141)
RLAW	−0.861**	−0.153	−0.778**	−0.0979	−0.836**	−0.196	−0.819**	−0.233	−0.859**	−0.177	−0.901***	−0.183
RLAW	(0.343)	(0.316)	(0.334)	(0.326)	(0.334)	(0.328)	(0.333)	(0.321)	(0.339)	(0.316)	(0.337)	(0.320)
REST_LINKS	0.0680	0.00959	0.0829	0.0205	0.0733	−0.000770	0.0590	0.00520	0.0723	0.00161	0.0842	2.33e-05
REST_LINKS	(0.0961)	(0.0912)	(0.0933)	(0.0883)	(0.0974)	(0.0912)	(0.0935)	(0.0916)	(0.0956)	(0.0918)	(0.0963)	(0.0922)
LINKS_TOTAL	0.0873	0.0868	−0.000199	0.0597	0.0980	0.0358	0.0243	0.0138	0.131	0.0786	0.0975	0.0664
LINKS_TOTAL	(0.113)	(0.0729)	(0.0898)	(0.0701)	(0.105)	(0.0785)	(0.0911)	(0.0749)	(0.112)	(0.0752)	(0.105)	(0.0757)
Observations	863	935	863	935	863	935	863	935	863	935	863	935
Pseudo R²	0.4510	0.3935	0.4484	0.3969	0.4510	0.3918	0.4449	0.3946	0.4539	0.3920	0.4548	0.3917

Split by	Low LEV	High LEV	Low LEV	High LEV	Low LEV	High LEV	Low LEV	High LEV	Low LEV	High LEV	Low LEV	High LEV
	DEG	DEG	EIGEN	EIGEN	BET	BET	CLOS	CLOS	PCA	PCA	N-SCORE	N-SCORE
CENTRALITY	−0.570**	−0.269	−0.790**	−0.371*	−0.407***	0.0848	−0.139	0.199	−0.432***	−0.0766	−0.891***	−0.0884
CENTRALITY	(0.244)	(0.183)	(0.312)	(0.196)	(0.132)	(0.139)	(0.106)	(0.128)	(0.146)	(0.125)	(0.296)	(0.270)
SIZE	0.133	0.616***	0.0781	0.600***	−0.0101	0.544***	0.0568	0.515***	0.0821	0.568***	0.0498	0.550***
SIZE	(0.167)	(0.168)	(0.157)	(0.165)	(0.159)	(0.165)	(0.157)	(0.169)	(0.162)	(0.172)	(0.154)	(0.169)
LEV	−1.187	0.166	−1.032	0.282	−1.288	0.255	−0.947	0.0944	−1.123	0.214	−0.994	0.231
LEV	(1.644)	(1.788)	(1.629)	(1.768)	(1.769)	(1.759)	(1.625)	(1.663)	(1.723)	(1.788)	(1.741)	(1.780)
ROA	4.673**	−0.823	4.406**	−0.942	4.106*	−0.813	4.624**	−0.955	4.398*	−0.537	4.402*	−0.625
ROA	(2.259)	(3.697)	(2.186)	(3.657)	(2.339)	(3.567)	(2.240)	(3.581)	(2.317)	(3.619)	(2.348)	(3.634)
EXP	−1.217**	0.0166	−1.069*	0.0522	−1.041*	−0.0499	−1.104*	−0.0571	−1.155*	−0.00331	−1.013*	−0.0193
EXP	(0.605)	(0.718)	(0.577)	(0.724)	(0.563)	(0.718)	(0.604)	(0.724)	(0.603)	(0.711)	(0.535)	(0.702)
RECEI	0.690	2.711**	0.509	2.734**	−0.139	2.830**	−0.198	2.733**	0.344	2.773**	0.409	2.792**
RECEI	(1.532)	(1.087)	(1.505)	(1.086)	(1.607)	(1.116)	(1.570)	(1.120)	(1.536)	(1.104)	(1.550)	(1.114)
LOSS	0.883**	−0.00734	0.887**	0.00734	0.843*	0.00829	0.892**	0.00507	0.851**	0.0174	0.815*	0.0114
LOSS	(0.432)	(0.435)	(0.437)	(0.442)	(0.431)	(0.437)	(0.427)	(0.436)	(0.434)	(0.436)	(0.443)	(0.437)
LOSS_t−1	−3.060***	−2.546***	−3.003***	−2.495***	−3.045***	−2.571***	−3.088***	−2.559***	−3.083***	−2.546***	−3.013***	−2.548***
LOSS_t−1	(0.348)	(0.286)	(0.355)	(0.282)	(0.357)	(0.286)	(0.359)	(0.285)	(0.356)	(0.290)	(0.357)	(0.291)
AC_SIZE	0.150*	−0.0550	0.132	−0.0605	0.104	−0.0477	0.124	−0.0527	0.129	−0.0727	0.0953	−0.0717
AC_SIZE	(0.0872)	(0.0681)	(0.0899)	(0.0666)	(0.0866)	(0.0766)	(0.0901)	(0.0656)	(0.0860)	(0.0690)	(0.0863)	(0.0721)
AC_MEET	−0.00347	0.0276	−0.00761	0.0290	−0.00510	0.0250	−0.0131	0.0292	−0.00255	0.0240	−0.00737	0.0253
AC_MEET	(0.0859)	(0.0547)	(0.0877)	(0.0524)	(0.0858)	(0.0525)	(0.0864)	(0.0522)	(0.0856)	(0.0529)	(0.0875)	(0.0525)
B_MEET	0.130***	0.000834	0.126**	0.000402	0.137***	−0.000964	0.144***	−0.00174	0.127***	0.00251	0.126**	0.00235
B_MEET	(0.0497)	(0.0381)	(0.0513)	(0.0384)	(0.0503)	(0.0366)	(0.0502)	(0.0375)	(0.0488)	(0.0374)	(0.0515)	(0.0374)
B_INDEP	−1.831**	−1.271*	−1.389**	−1.064	−1.168*	−1.293*	−1.225*	−1.276*	−1.463**	−1.270*	−1.382**	−1.298*
B_INDEP	(0.748)	(0.666)	(0.660)	(0.693)	(0.669)	(0.671)	(0.660)	(0.666)	(0.705)	(0.678)	(0.686)	(0.668)
BIG4	0.591	−1.623***	0.503	−1.590***	0.471	−1.596***	0.436	−1.524***	0.595	−1.616***	0.577	−1.595***
BIG4	(0.742)	(0.399)	(0.731)	(0.389)	(0.738)	(0.402)	(0.702)	(0.396)	(0.723)	(0.402)	(0.739)	(0.393)
AF_t−1	0.164	−0.0804	0.182	−0.0970	0.160	−0.0917	0.167	−0.109	0.171	−0.0828	0.152	−0.0908
AF_t−1	(0.136)	(0.141)	(0.134)	(0.140)	(0.144)	(0.142)	(0.136)	(0.142)	(0.140)	(0.140)	(0.138)	(0.141)
RLAW	−0.861**	−0.153	−0.778**	−0.0979	−0.836**	−0.196	−0.819**	−0.233	−0.859**	−0.177	−0.901***	−0.183
RLAW	(0.343)	(0.316)	(0.334)	(0.326)	(0.334)	(0.328)	(0.333)	(0.321)	(0.339)	(0.316)	(0.337)	(0.320)
REST_LINKS	0.0680	0.00959	0.0829	0.0205	0.0733	−0.000770	0.0590	0.00520	0.0723	0.00161	0.0842	2.33e-05
REST_LINKS	(0.0961)	(0.0912)	(0.0933)	(0.0883)	(0.0974)	(0.0912)	(0.0935)	(0.0916)	(0.0956)	(0.0918)	(0.0963)	(0.0922)
LINKS_TOTAL	0.0873	0.0868	−0.000199	0.0597	0.0980	0.0358	0.0243	0.0138	0.131	0.0786	0.0975	0.0664
LINKS_TOTAL	(0.113)	(0.0729)	(0.0898)	(0.0701)	(0.105)	(0.0785)	(0.0911)	(0.0749)	(0.112)	(0.0752)	(0.105)	(0.0757)
Observations	863	935	863	935	863	935	863	935	863	935	863	935
Pseudo R²	0.4510	0.3935	0.4484	0.3969	0.4510	0.3918	0.4449	0.3946	0.4539	0.3920	0.4548	0.3917

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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