Impact of COVID-19 outbreak on earnings management
| M1 | M2 | M3 | ||
|---|---|---|---|---|
| Explanatory variables | Predicted sign | Coef. (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 | 410 | 410 | 410 | |
| Wald χ2 | 105.07*** | 94.31*** | 154.31*** | |
| Log likelihood | 37.416 | 23.294 | 51.294 |
| M1 | M2 | M3 | ||
|---|---|---|---|---|
| Explanatory variables | Predicted sign | Coef. (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 | 410 | 410 | 410 | |
| Wald | 105.07*** | 94.31*** | 154.31*** | |
| Log likelihood | 37.416 | 23.294 | 51.294 |
Source(s): Authors own work
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