Table 6

Impact of COVID-19 outbreak on earnings management

M1M2M3
Explanatory variablesPredicted signCoef. (z-statistic)Coef. (z-statistic)Coef. (z-statistic)
COVID?−0.014** (−2.55)−0.009* (−1.86)−0.021*** (−3.26)
ROA−0.011** (−1.99)−0.008** (−2.11)−0.014*** (−4.77)
MTB+0.009** (2.55)0.008* (1.84)0.013** (2.04)
LEV+0.011* (1.88)0.019** (2.39)0.028** (2.14)
AUD−0.011 (−1.02)0.003 (0.59)−0.017 (−0.75)
BLOC−0.009*** (−4.87)−0.004 (−0.81)−0.012*** (−6.03)
SIZE?0.005 (0.94)0.002 (0.016)0.006 (1.08)
Constant?0.427*** (20.29)−0.187*** (−9.51)0.523*** (17.54)
Observations 410410410
Wald χ2 105.07***94.31***154.31***
Log likelihood 37.41623.29451.294

Source(s): Authors own work

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