Results of H3
| Panel A: Test 1-logistic regression for reclassified firms | |||
|---|---|---|---|
| Dependent variable | Year | Dependent variable | Year |
| Cases Included in Analysis | 75 | Cases Included in Analysis | 71 |
| Missing Cases | 19 | Missing Cases | 11 |
| Total | 94 | Total | 82 |
| Accuracy Rate | 50.70% | Accuracy Rate | 50.70% |
| Panel A: Test 1-logistic regression for reclassified firms | |||
|---|---|---|---|
| Year | Year | ||
| 75 | 71 | ||
| 19 | 11 | ||
| 94 | 82 | ||
| 50.70% | 50.70% | ||
| 2007–2008 | 2007–2009 | ||||||
|---|---|---|---|---|---|---|---|
| Variable | Coefficients | Sig | Exp (B) | Variable | Coefficients | Sig | Exp (B) |
| DAC | −2.566 (0.896) | *** | 0.077 | DAC | −0.739 (0.351) | ** | 0.478 |
| Constant | −1.697 (1.169) | Constant | 0.337 (0.306) | ||||
| 2007–2008 | 2007–2009 | ||||||
|---|---|---|---|---|---|---|---|
| Variable | Coefficients | Sig | Exp (B) | Variable | Coefficients | Sig | Exp (B) |
| DAC | −2.566 (0.896) | *** | 0.077 | DAC | −0.739 (0.351) | ** | 0.478 |
| Constant | −1.697 (1.169) | Constant | 0.337 (0.306) | ||||
| Panel B: Test 2-OLS regression of accruals on firm financial measures | |||||
|---|---|---|---|---|---|
| 2008 | 2009 | ||||
| Variables | Coefficients | Sig | Variables | Coefficients | Sig |
| 1. Reclassified firms vs Not | |||||
| DV | 0.050 (0.010) | *** | DV | −0.014 (0.007) | *** |
| LNMV | −0.008 (0.001) | *** | RESTAS | 0.528 (0.102) | *** |
| OPM | −0.023 (0.007) | *** | OPM | −0.322 (0.049) | *** |
| ETL | −0.097 (0.017) | *** | ETL | −0.049 (0.009) | *** |
| Constant | 0.009 (0.002) | Constant | 0.057 (0.001) | ||
| R2 adj | 0.664 | R2 adj | 0.713 | ||
| Sample size | 84 | Sample size | 83 | ||
| 2. US firms vs. reclassified | |||||
| DV | 0.006 (0.002) | *** | DV | 0.024 (0.003) | *** |
| SALETAS | −0.046 (0.016) | *** | LNMV | −0.001 (0.000) | *** |
| OPM | 0.006 (0.003) | * | OPM | 0.002 (0.001) | *** |
| IGEAR | 0.004 (0.001) | ** | TLSFU | 0.004 (0.003) | *** |
| Constant | 0.002 (0.001) | Constant | −0.012 (0.002) | *** | |
| R2 adj | 0.472 | R2 adj | 0.515 | ||
| Sample size | 331 | Sample size | 334 | ||
| 3. US firms vs. not reclassified | |||||
| DV | 0.006 (0.004) | * | DV | 0.004 (0.002) | *** |
| SALETAS | −0.050 (0.026) | * | SALETAS | −0.038 (0.011) | *** |
| ROCE | 0.027 (0.006) | *** | ROCE | 0.024 (0.007) | *** |
| INTCOV | 0.004 (0.002) | * | INTCOV | 0.005 (0.002) | *** |
| Constant | 0.002 (0.002) | Constant | −0.001 (0.001) | * | |
| R2 adj | 0.314 | R2 adj | 0.316 | ||
| Sample size | 334 | Sample size | 341 | ||
| Panel B: Test 2-OLS regression of accruals on firm financial measures | |||||
|---|---|---|---|---|---|
| 2008 | 2009 | ||||
| Variables | Coefficients | Sig | Variables | Coefficients | Sig |
| DV | 0.050 (0.010) | *** | DV | −0.014 (0.007) | *** |
| LNMV | −0.008 (0.001) | *** | RESTAS | 0.528 (0.102) | *** |
| OPM | −0.023 (0.007) | *** | OPM | −0.322 (0.049) | *** |
| ETL | −0.097 (0.017) | *** | ETL | −0.049 (0.009) | *** |
| Constant | 0.009 (0.002) | Constant | 0.057 (0.001) | ||
| 0.664 | 0.713 | ||||
| Sample size | 84 | Sample size | 83 | ||
| DV | 0.006 (0.002) | *** | DV | 0.024 (0.003) | *** |
| SALETAS | −0.046 (0.016) | *** | LNMV | −0.001 (0.000) | *** |
| OPM | 0.006 (0.003) | * | OPM | 0.002 (0.001) | *** |
| IGEAR | 0.004 (0.001) | ** | TLSFU | 0.004 (0.003) | *** |
| Constant | 0.002 (0.001) | Constant | −0.012 (0.002) | *** | |
| 0.472 | 0.515 | ||||
| Sample size | 331 | Sample size | 334 | ||
| DV | 0.006 (0.004) | * | DV | 0.004 (0.002) | *** |
| SALETAS | −0.050 (0.026) | * | SALETAS | −0.038 (0.011) | *** |
| ROCE | 0.027 (0.006) | *** | ROCE | 0.024 (0.007) | *** |
| INTCOV | 0.004 (0.002) | * | INTCOV | 0.005 (0.002) | *** |
| Constant | 0.002 (0.002) | Constant | −0.001 (0.001) | * | |
| 0.314 | 0.316 | ||||
| Sample size | 334 | Sample size | 341 | ||
Note(s): *, ** and *** indicate statistically significant factors at 10%, 5 and 1% (two-tailed) level, respectively
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