Table A5

Results of H3

Panel A: Test 1-logistic regression for reclassified firms
Dependent variableYearDependent variableYear
Cases Included in Analysis75Cases Included in Analysis71
Missing Cases19Missing Cases11
Total94Total82
Accuracy Rate50.70%Accuracy Rate50.70%
2007–20082007–2009
VariableCoefficientsSigExp (B)VariableCoefficientsSigExp (B)
DAC−2.566 (0.896)***0.077DAC−0.739 (0.351)**0.478
Constant−1.697 (1.169)  Constant0.337 (0.306)  
Panel B: Test 2-OLS regression of accruals on firm financial measures
20082009
VariablesCoefficientsSigVariablesCoefficientsSig
1. Reclassified firms vs Not
DV0.050 (0.010)***DV−0.014 (0.007)***
LNMV−0.008 (0.001)***RESTAS0.528 (0.102)***
OPM−0.023 (0.007)***OPM−0.322 (0.049)***
ETL−0.097 (0.017)***ETL−0.049 (0.009)***
Constant0.009 (0.002) Constant0.057 (0.001) 
R2 adj0.664 R2 adj0.713 
Sample size84 Sample size83 
2. US firms vs. reclassified
DV0.006 (0.002)***DV0.024 (0.003)***
SALETAS−0.046 (0.016)***LNMV−0.001 (0.000)***
OPM0.006 (0.003)*OPM0.002 (0.001)***
IGEAR0.004 (0.001)**TLSFU0.004 (0.003)***
Constant0.002 (0.001) Constant−0.012 (0.002)***
R2 adj0.472 R2 adj0.515 
Sample size331 Sample size334 
3. US firms vs. not reclassified
DV0.006 (0.004)*DV0.004 (0.002)***
SALETAS−0.050 (0.026)*SALETAS−0.038 (0.011)***
ROCE0.027 (0.006)***ROCE0.024 (0.007)***
INTCOV0.004 (0.002)*INTCOV0.005 (0.002)***
Constant0.002 (0.002) Constant−0.001 (0.001)*
R2 adj0.314 R2 adj0.316 
Sample size334 Sample size341 

Note(s): *, ** and *** indicate statistically significant factors at 10%, 5 and 1% (two-tailed) level, respectively

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