Table A7 H5 Results (Only significant...

Table A7

H5 Results (Only significant results displayed)

Panel A: Results of Test 1a
Variables	2010		2011		2012		2013		Pair-wise F-test for equality of variances
Variables	Mean	Standard deviation	Mean	Standard deviation	Mean	Standard deviation	Mean	Standard deviation	2010–2011	2012–2013
Australia
Size
SALESHA	0.35609	0.70127	0.70709	1.89878	0.26989	0.46806	0.61429	1.80067	**	**
NAVSH	0.89565	1.31228	0.8987	1.28365	0.64516	0.80347	0.79997	1.20466		*
SALETAS	0.2996	0.31779	0.40479	0.55121	0.35063	0.39333	0.45254	1.03191	*
RESSFU	0.10506	0.22607	0.23863	0.9419	0.26865	1.65146	0.64177	3.8685	*
Investment
DIVYI	0.01322	0.01732	0.02547	0.03448	0.02659	0.03541	0.01414	0.01752	***	***
DIVCOV	1.02954	4.13951	−1.50749	10.94006	0.70371	0.86724	1.58895	2.35221		**
PE	2.00102	13.41952	0.33854	3.32617	9.32012	17.11151	10.55722	22.03322	*	**
Growth
MVBV	4.01088	5.53435	2.5903	4.67312	3.04244	3.62545	4.85093	9.16314	*	**
Profitability
PLOWB	3.49403	7.51467	4.16176	12.80474	1.45446	6.98415	0.74224	11.37536	*	*
OPM	−0.10043	1.83437	0.17114	3.79912	−0.69374	2.70753	−1.56045	5.49045		**
NPM	−0.15016	1.8206	0.11798	3.78999	−0.75957	2.69612	−1.63757	5.39983		**
ROSC	−0.13489	0.7798	0.20936	1.14506	−0.03644	0.53487	−0.18681	1.05011		**
ROCE	0.01079	0.26386	0.08112	0.61916	−0.03573	0.5239	−0.22975	0.85461		*
Liquidity
CUR	2.39123	5.20219	2.70762	9.34648	8.47532	13.02886	13.23829	27.96148		**
CASH	4.36117	12.79833	2.33102	3.51797	2.45732	4.03304	4.13556	8.9114	**	**
QUI	2.39123	5.20219	2.70762	9.34648	8.47532	13.02886	13.23829	27.96148		**
CFM	−0.10793	1.80566	0.2966	3.69966	0.49548	7.68706	−3.99484	17.90465		**
WCR	0.60513	2.05868	0.45049	4.20555	0.8329	4.98644	2.03772	6.31571	*
Leverage
ETL	3.62634	16.71694	1.47782	5.06827	6.55221	8.15292	8.61235	13.42283	*	**
INTCOV	3.20094	8.51782	3.95295	16.06414	0.11623	8.1694	2.65308	19.61893	*	***
DEBTE	0.99199	4.06155	0.82449	3.48298	0.54087	1.85767	1.28147	4.70864		**
DSFU	0.50443	1.23136	−1.89203	18.00289	1.35534	6.42273	1.09665	4.92777	*
Germany
Size
SALESHA	6.37949	11.37305	4.02894	4.64062	3.81774	5.32318	4.97658	9.2266	*	*
NAVSH	6.56211	6.62271	5.04877	4.87637	3.97987	3.70093	5.18672	6.45398		*
Investment
DIVSH	0.27856	0.63787	0.36654	0.74987	0.20421	0.59306	0.51184	1.34277		**
DIVYI	0.08676	0.42103	0.34681	1.57551	0.10387	0.57739	1.00448	5.6874	*	*
PE	4.99277	11.44885	8.5283	16.5876	2.31325	13.42251	3.2557	21.39848	*	**
Profitability
PLOWB	1.81112	4.00981	3.27794	6.52031	1.56924	5.59235	3.38352	7.92177	**	**
OPM	0.32607	1.32588	0.57471	3.03981	−1.16163	6.68168	−3.35431	11.61465	*	*
NPM	0.27273	1.26838	0.54365	3.00142	−1.32733	6.3534	−3.32406	11.60908		*
ROSC	0.2904	1.64347	0.00028	0.37992	−0.03677	0.44951	−0.40212	2.50441		*
Liquidity
CUR	6.94702	6.72043	9.70117	18.82794	5.58677	5.5877	7.69598	10.76265	*	*
CASH	4.16347	10.49637	5.11818	13.31893	4.45949	11.26285	2.01752	3.21901		***
QUI	6.94702	6.72043	9.70117	18.82794	5.58677	5.5877	7.69598	10.76265	*	*
CFM	1.37996	11.179	0.17311	3.24329	−0.80027	5.10529	−3.27513	11.62933		**
WCR	0.6342	2.88309	1.4066	6.99424	2.76793	13.13265	1.61608	7.43698	*
Leverage
DEBT	3.36134	3.83121	4.81655	7.1026	5.89608	9.32104	5.64413	9.5301	**
ETL	4.76354	5.03637	6.01758	7.84534	4.46961	6.25693	6.52694	13.45421	*	**
TLSFU	0.74032	2.20111	1.02385	2.6418	0.6888	0.93881	1.28939	2.88781		**
CLSFU	0.15402	0.32199	0.4753	1.56069	0.25219	0.43793	0.52551	1.50513	*	*
INTCOV	2.20524	8.566	0.89079	15.14612	0.15686	9.65815	−0.28725	16.23109	**	*
DEBTE	0.60985	2.69962	0.8925	2.78404	0.88111	2.64863	1.76614	6.22696		*
DSFU	0.27693	2.79358	0.54694	1.82506	0.6049	1.96751	1.47917	5.86864		*
UK
Size
SALESHA	1.42626	1.87635	0.90418	1.18228	1.10258	1.40456	1.57381	2.1054	**	*
NAVSH	3.25342	2.91361	4.87325	6.33165	3.88213	3.97432	6.0662	8.33761	**	**
Investment
DIVSH	0.14301	0.12057	0.1854	0.16711	0.21454	0.18101	0.22058	0.1959	*
DIVYI	0.04313	0.0316	0.06649	0.06628	0.06879	0.0787	0.04777	0.03856	*	*
DIVCOV	3.8057	5.38215	0.32449	4.32205	1.19517	4.25153	4.6602	5.51311		**
PE	7.84164	12.95414	5.4261	21.0314	4.82284	11.23845	7.96659	7.58842	*	*
Growth
MVBV	1.82254	2.58508	3.32355	9.91163	1.95003	4.20044	4.3043	12.73122	**	**
Profitability
PLOWB	2.88271	4.22061	2.53396	9.43067	1.34642	7.92674	1.62919	6.47813	*
ROSC	0.09874	0.12282	0.07774	0.24328	0.17516	0.5506	0.12601	0.20006	**	*
EPS	0.61218	0.9437	0.24529	0.84573	0.48645	1.01349	0.99307	1.42097		**
ROCE	0.07829	0.15931	0.11907	0.32073	0.16028	0.5378	0.00957	0.57618	*
Liquidity
CUR	2.33762	4.10305	4.49478	10.9762	2.41277	2.86499	3.59121	7.70302	**	*
CASH	1.95639	5.33458	1.95949	4.06089	1.22481	1.7642	2.5836	7.10516		**
QUI	2.33762	4.10305	4.49478	10.9762	2.41277	2.86499	3.59121	7.70302	**	*
CFSH	0.71553	0.97936	0.34204	0.90703	0.57007	1.03395	1.08947	1.4331		*
WCR	0.00585	3.07367	0.35866	6.84636	−0.19272	2.68673	−0.39855	5.02422	*	*
Leverage
DEBT	1.71102	1.72557	2.21752	2.69868	2.48885	3.76062	4.94188	13.64583	**	**
ETL	2.23328	2.2774	4.29891	8.64991	3.03094	4.37669	6.09287	13.67522	**	**
TLSFU	0.825	1.30295	1.38737	3.31607	1.35769	5.08927	1.21916	5.63843	*
CLSFU	0.34446	0.75251	0.52725	1.31934	0.53546	3.98214	0.50707	4.73983	**
INTCOV	8.42453	9.93636	8.58923	16.22567	8.57869	8.23333	11.23228	13.93386	*	*
IGEAR	1.15135	4.93985	−0.09711	1.9322	0.2763	1.12574	0.0905	0.57089		*
US
Size
SALESHA	9.90287	10.80645	8.12996	7.84843	8.38255	8.54154	9.57645	10.98327	**	*
NAVSH	14.94961	15.75285	14.35624	11.17384	13.88408	10.68414	15.64397	13.6162	*	*
Investment
DIVSH	1.51469	3.41311	1.1565	1.6606	1.10948	1.08562	1.33954	2.46112	**	*
DIVYI	0.06255	0.15246	0.06857	0.18679	0.08009	0.24181	0.0524	0.13061		*
DIVCOV	0.32724	8.07798	0.76822	3.10233	0.60722	1.83744	1.24533	2.32621	*	*
PE	11.22064	28.04251	10.00086	21.93105	10.82662	28.53658	19.1688	25.95973	**
Growth
MVBV	2.21874	4.3864	1.66177	2.5499	1.87358	3.0659	2.51674	5.04452	**	**
Profitability
PLOWB	0.49264	17.57637	1.85184	10.08118	1.11279	11.76157	1.83618	18.61057	*
OPM	0.37384	1.80291	0.1435	0.49019	0.13804	0.51779	0.28159	1.956	**	*
ROSC	0.1816	0.94395	0.15988	0.94412	0.09197	0.2977	0.15402	0.74955		**
ROCE	0.0637	0.35194	0.136	0.90996	0.04096	0.14085	0.08648	0.45336	*	**
Liquidity
CUR	2.12702	3.04007	1.78025	2.24478	1.75029	2.34824	2.08176	3.06104	*	**
CASH	0.81183	1.65351	0.65141	1.11947	0.71926	1.53286	0.75706	1.49112	**
QUI	2.12702	3.04007	1.78025	2.24478	1.75029	2.34824	2.08176	3.06104	*	**
WCR	−0.0241	5.64126	−0.02224	3.44819	0.18585	10.47791	−0.67127	3.993	**	*
Leverage
DEBT	2.27428	3.18699	1.89981	2.02795	2.39803	4.02688	2.04847	2.59545	**	*
CGEAR	1.13586	2.50377	0.87156	1.26079	0.82398	2.5143	0.78149	1.0279	**	*
INTCOV	6.13541	23.68729	2.64226	16.82492	4.65839	18.34971	4.78832	9.90915	**	**
IGEAR	0.25034	3.53862	0.0891	4.54287	0.09835	4.55149	0.57272	2.57496		*
DSFU	0.48638	0.98994	0.73695	1.46366	0.6824	1.94025	0.6506	2.08556	**

Panel A: Results of Test 1a
Variables	2010		2011		2012		2013		Pair-wise F-test for equality of variances
Variables	Mean	Standard deviation	Mean	Standard deviation	Mean	Standard deviation	Mean	Standard deviation	2010–2011	2012–2013
Australia
Size
SALESHA	0.35609	0.70127	0.70709	1.89878	0.26989	0.46806	0.61429	1.80067	**	**
NAVSH	0.89565	1.31228	0.8987	1.28365	0.64516	0.80347	0.79997	1.20466		*
SALETAS	0.2996	0.31779	0.40479	0.55121	0.35063	0.39333	0.45254	1.03191	*
RESSFU	0.10506	0.22607	0.23863	0.9419	0.26865	1.65146	0.64177	3.8685	*
Investment
DIVYI	0.01322	0.01732	0.02547	0.03448	0.02659	0.03541	0.01414	0.01752	***	***
DIVCOV	1.02954	4.13951	−1.50749	10.94006	0.70371	0.86724	1.58895	2.35221		**
PE	2.00102	13.41952	0.33854	3.32617	9.32012	17.11151	10.55722	22.03322	*	**
Growth
MVBV	4.01088	5.53435	2.5903	4.67312	3.04244	3.62545	4.85093	9.16314	*	**
Profitability
PLOWB	3.49403	7.51467	4.16176	12.80474	1.45446	6.98415	0.74224	11.37536	*	*
OPM	−0.10043	1.83437	0.17114	3.79912	−0.69374	2.70753	−1.56045	5.49045		**
NPM	−0.15016	1.8206	0.11798	3.78999	−0.75957	2.69612	−1.63757	5.39983		**
ROSC	−0.13489	0.7798	0.20936	1.14506	−0.03644	0.53487	−0.18681	1.05011		**
ROCE	0.01079	0.26386	0.08112	0.61916	−0.03573	0.5239	−0.22975	0.85461		*
Liquidity
CUR	2.39123	5.20219	2.70762	9.34648	8.47532	13.02886	13.23829	27.96148		**
CASH	4.36117	12.79833	2.33102	3.51797	2.45732	4.03304	4.13556	8.9114	**	**
QUI	2.39123	5.20219	2.70762	9.34648	8.47532	13.02886	13.23829	27.96148		**
CFM	−0.10793	1.80566	0.2966	3.69966	0.49548	7.68706	−3.99484	17.90465		**
WCR	0.60513	2.05868	0.45049	4.20555	0.8329	4.98644	2.03772	6.31571	*
Leverage
ETL	3.62634	16.71694	1.47782	5.06827	6.55221	8.15292	8.61235	13.42283	*	**
INTCOV	3.20094	8.51782	3.95295	16.06414	0.11623	8.1694	2.65308	19.61893	*	***
DEBTE	0.99199	4.06155	0.82449	3.48298	0.54087	1.85767	1.28147	4.70864		**
DSFU	0.50443	1.23136	−1.89203	18.00289	1.35534	6.42273	1.09665	4.92777	*
Germany
Size
SALESHA	6.37949	11.37305	4.02894	4.64062	3.81774	5.32318	4.97658	9.2266	*	*
NAVSH	6.56211	6.62271	5.04877	4.87637	3.97987	3.70093	5.18672	6.45398		*
Investment
DIVSH	0.27856	0.63787	0.36654	0.74987	0.20421	0.59306	0.51184	1.34277		**
DIVYI	0.08676	0.42103	0.34681	1.57551	0.10387	0.57739	1.00448	5.6874	*	*
PE	4.99277	11.44885	8.5283	16.5876	2.31325	13.42251	3.2557	21.39848	*	**
Profitability
PLOWB	1.81112	4.00981	3.27794	6.52031	1.56924	5.59235	3.38352	7.92177	**	**
OPM	0.32607	1.32588	0.57471	3.03981	−1.16163	6.68168	−3.35431	11.61465	*	*
NPM	0.27273	1.26838	0.54365	3.00142	−1.32733	6.3534	−3.32406	11.60908		*
ROSC	0.2904	1.64347	0.00028	0.37992	−0.03677	0.44951	−0.40212	2.50441		*
Liquidity
CUR	6.94702	6.72043	9.70117	18.82794	5.58677	5.5877	7.69598	10.76265	*	*
CASH	4.16347	10.49637	5.11818	13.31893	4.45949	11.26285	2.01752	3.21901		***
QUI	6.94702	6.72043	9.70117	18.82794	5.58677	5.5877	7.69598	10.76265	*	*
CFM	1.37996	11.179	0.17311	3.24329	−0.80027	5.10529	−3.27513	11.62933		**
WCR	0.6342	2.88309	1.4066	6.99424	2.76793	13.13265	1.61608	7.43698	*
Leverage
DEBT	3.36134	3.83121	4.81655	7.1026	5.89608	9.32104	5.64413	9.5301	**
ETL	4.76354	5.03637	6.01758	7.84534	4.46961	6.25693	6.52694	13.45421	*	**
TLSFU	0.74032	2.20111	1.02385	2.6418	0.6888	0.93881	1.28939	2.88781		**
CLSFU	0.15402	0.32199	0.4753	1.56069	0.25219	0.43793	0.52551	1.50513	*	*
INTCOV	2.20524	8.566	0.89079	15.14612	0.15686	9.65815	−0.28725	16.23109	**	*
DEBTE	0.60985	2.69962	0.8925	2.78404	0.88111	2.64863	1.76614	6.22696		*
DSFU	0.27693	2.79358	0.54694	1.82506	0.6049	1.96751	1.47917	5.86864		*
UK
Size
SALESHA	1.42626	1.87635	0.90418	1.18228	1.10258	1.40456	1.57381	2.1054	**	*
NAVSH	3.25342	2.91361	4.87325	6.33165	3.88213	3.97432	6.0662	8.33761	**	**
Investment
DIVSH	0.14301	0.12057	0.1854	0.16711	0.21454	0.18101	0.22058	0.1959	*
DIVYI	0.04313	0.0316	0.06649	0.06628	0.06879	0.0787	0.04777	0.03856	*	*
DIVCOV	3.8057	5.38215	0.32449	4.32205	1.19517	4.25153	4.6602	5.51311		**
PE	7.84164	12.95414	5.4261	21.0314	4.82284	11.23845	7.96659	7.58842	*	*
Growth
MVBV	1.82254	2.58508	3.32355	9.91163	1.95003	4.20044	4.3043	12.73122	**	**
Profitability
PLOWB	2.88271	4.22061	2.53396	9.43067	1.34642	7.92674	1.62919	6.47813	*
ROSC	0.09874	0.12282	0.07774	0.24328	0.17516	0.5506	0.12601	0.20006	**	*
EPS	0.61218	0.9437	0.24529	0.84573	0.48645	1.01349	0.99307	1.42097		**
ROCE	0.07829	0.15931	0.11907	0.32073	0.16028	0.5378	0.00957	0.57618	*
Liquidity
CUR	2.33762	4.10305	4.49478	10.9762	2.41277	2.86499	3.59121	7.70302	**	*
CASH	1.95639	5.33458	1.95949	4.06089	1.22481	1.7642	2.5836	7.10516		**
QUI	2.33762	4.10305	4.49478	10.9762	2.41277	2.86499	3.59121	7.70302	**	*
CFSH	0.71553	0.97936	0.34204	0.90703	0.57007	1.03395	1.08947	1.4331		*
WCR	0.00585	3.07367	0.35866	6.84636	−0.19272	2.68673	−0.39855	5.02422	*	*
Leverage
DEBT	1.71102	1.72557	2.21752	2.69868	2.48885	3.76062	4.94188	13.64583	**	**
ETL	2.23328	2.2774	4.29891	8.64991	3.03094	4.37669	6.09287	13.67522	**	**
TLSFU	0.825	1.30295	1.38737	3.31607	1.35769	5.08927	1.21916	5.63843	*
CLSFU	0.34446	0.75251	0.52725	1.31934	0.53546	3.98214	0.50707	4.73983	**
INTCOV	8.42453	9.93636	8.58923	16.22567	8.57869	8.23333	11.23228	13.93386	*	*
IGEAR	1.15135	4.93985	−0.09711	1.9322	0.2763	1.12574	0.0905	0.57089		*
US
Size
SALESHA	9.90287	10.80645	8.12996	7.84843	8.38255	8.54154	9.57645	10.98327	**	*
NAVSH	14.94961	15.75285	14.35624	11.17384	13.88408	10.68414	15.64397	13.6162	*	*
Investment
DIVSH	1.51469	3.41311	1.1565	1.6606	1.10948	1.08562	1.33954	2.46112	**	*
DIVYI	0.06255	0.15246	0.06857	0.18679	0.08009	0.24181	0.0524	0.13061		*
DIVCOV	0.32724	8.07798	0.76822	3.10233	0.60722	1.83744	1.24533	2.32621	*	*
PE	11.22064	28.04251	10.00086	21.93105	10.82662	28.53658	19.1688	25.95973	**
Growth
MVBV	2.21874	4.3864	1.66177	2.5499	1.87358	3.0659	2.51674	5.04452	**	**
Profitability
PLOWB	0.49264	17.57637	1.85184	10.08118	1.11279	11.76157	1.83618	18.61057	*
OPM	0.37384	1.80291	0.1435	0.49019	0.13804	0.51779	0.28159	1.956	**	*
ROSC	0.1816	0.94395	0.15988	0.94412	0.09197	0.2977	0.15402	0.74955		**
ROCE	0.0637	0.35194	0.136	0.90996	0.04096	0.14085	0.08648	0.45336	*	**
Liquidity
CUR	2.12702	3.04007	1.78025	2.24478	1.75029	2.34824	2.08176	3.06104	*	**
CASH	0.81183	1.65351	0.65141	1.11947	0.71926	1.53286	0.75706	1.49112	**
QUI	2.12702	3.04007	1.78025	2.24478	1.75029	2.34824	2.08176	3.06104	*	**
WCR	−0.0241	5.64126	−0.02224	3.44819	0.18585	10.47791	−0.67127	3.993	**	*
Leverage
DEBT	2.27428	3.18699	1.89981	2.02795	2.39803	4.02688	2.04847	2.59545	**	*
CGEAR	1.13586	2.50377	0.87156	1.26079	0.82398	2.5143	0.78149	1.0279	**	*
INTCOV	6.13541	23.68729	2.64226	16.82492	4.65839	18.34971	4.78832	9.90915	**	**
IGEAR	0.25034	3.53862	0.0891	4.54287	0.09835	4.55149	0.57272	2.57496		*
DSFU	0.48638	0.98994	0.73695	1.46366	0.6824	1.94025	0.6506	2.08556	**

Panel B:Test 1b: OLS regression of price on BVPS and NPPS
	2010	Sig	2011	Sig	2012	Sig	2013	Sig
Australia
R²	0.688		0.834		0.673		0.647
BVPS	2.630	***	2.040	***	3.413	***	4.223	***
NPPS	5.388	**	5.332	***	7.698	**	11.34	*
Sample Size	57		57		57		57
Germany
R²	0.560		0.518		0.540		0.653
BVPS	1.224	***	1.109	***	1.562	***	2.448	***
NPPS	2.407	***	1.366	**	0.657	**	1.241	***
Sample Size	42		42		42		42
UK
R²	0.725		0.819		0.800		0.909
BVPS	0.558	***	0.595	***	0.516	***	0.349	***
NPPS	0.721		0.677	*	1.078	*	1.564	**
Sample Size	40		40		40		37
US
R²	0.599		0.684		0.557		0.566
BVPS	0.329	***	0.261	***	0.491	***	0.901	***
NPPS	2.683	***	3.165	***	2.386	***	2.851	***
Sample Size	158		164		166		172

Panel B:Test 1b: OLS regression of price on BVPS and NPPS
	2010	Sig	2011	Sig	2012	Sig	2013	Sig
Australia
R²	0.688		0.834		0.673		0.647
BVPS	2.630	***	2.040	***	3.413	***	4.223	***
NPPS	5.388	**	5.332	***	7.698	**	11.34	*
Sample Size	57		57		57		57
Germany
R²	0.560		0.518		0.540		0.653
BVPS	1.224	***	1.109	***	1.562	***	2.448	***
NPPS	2.407	***	1.366	**	0.657	**	1.241	***
Sample Size	42		42		42		42
UK
R²	0.725		0.819		0.800		0.909
BVPS	0.558	***	0.595	***	0.516	***	0.349	***
NPPS	0.721		0.677	*	1.078	*	1.564	**
Sample Size	40		40		40		37
US
R²	0.599		0.684		0.557		0.566
BVPS	0.329	***	0.261	***	0.491	***	0.901	***
NPPS	2.683	***	3.165	***	2.386	***	2.851	***
Sample Size	158		164		166		172

Panel C:Test 2: Logistic regressions
Variable	2010–2011		2012–2013
Variable	Coefficients	Sig	Coefficients	Sig
Australia
ΔTq	−1.459 (0.774)	*	0.939 (0.461)	**
Included Cases	106		109
Germany
ΔTq	−1.415 (0.424)	***	1.473 (0.707)	**
Included Cases	89		93
UK
ΔTq	−2.069 (0.758)	***	−2.483 (1.285)	*
Included Cases	83		76
US
ΔTq	−1.030 (0.333)	***	0.393 (0.181)	**
Included Cases	320		338

Panel C:Test 2: Logistic regressions
Variable	2010–2011		2012–2013
Variable	Coefficients	Sig	Coefficients	Sig
Australia
ΔTq	−1.459 (0.774)	*	0.939 (0.461)	**
Included Cases	106		109
Germany
ΔTq	−1.415 (0.424)	***	1.473 (0.707)	**
Included Cases	89		93
UK
ΔTq	−2.069 (0.758)	***	−2.483 (1.285)	*
Included Cases	83		76
US
ΔTq	−1.030 (0.333)	***	0.393 (0.181)	**
Included Cases	320		338

Panel D: Test 3a: Pearson correlation between Accruals-OCF
	2010	Sig	2011	Sig	2012	Sig	2013	Sig
Australia
DAC-OCF	−0.563	***	0.366	***	0.312	**	0.582	***
Sample Size	57		57		57		57
Germany
DAC-OCF	−0.357	**	−0.287	**	0.289	**	0.393	***
Sample Size	49		49		49		49
UK
DAC-OCF	−0.308	**	0.527	***	0.469	***	0.495	***
Sample Size	43		43		43		43
US
DAC-OCF	−0.221	***	0.521	***	0.366	***	0.157	**
Sample Size	172		172		172		172

Panel D: Test 3a: Pearson correlation between Accruals-OCF
	2010	Sig	2011	Sig	2012	Sig	2013	Sig
Australia
DAC-OCF	−0.563	***	0.366	***	0.312	**	0.582	***
Sample Size	57		57		57		57
Germany
DAC-OCF	−0.357	**	−0.287	**	0.289	**	0.393	***
Sample Size	49		49		49		49
UK
DAC-OCF	−0.308	**	0.527	***	0.469	***	0.495	***
Sample Size	43		43		43		43
US
DAC-OCF	−0.221	***	0.521	***	0.366	***	0.157	**
Sample Size	172		172		172		172

Panel D: Test 3b: Logistic regression of accruals
Variable	2010–2011		2012–2013
Variable	Coefficients	Sig	Coefficients	Sig
Australia
DAC	−3.538 (1.942)	*	−8.887 (5.131)	*
Included Cases	73		71
Germany
DAC	3.226 (1.906)	*	4.997 (2.996)	*
Included Cases	60		88
UK
DAC	3.251 (0.862)	***	−10.180 (3.953)	**
Included Cases	76		66
US
DAC	0.979 (0.559)	*	−1.977 (1.041)	*
Included Cases	249		280

Panel D: Test 3b: Logistic regression of accruals
Variable	2010–2011		2012–2013
Variable	Coefficients	Sig	Coefficients	Sig
Australia
DAC	−3.538 (1.942)	*	−8.887 (5.131)	*
Included Cases	73		71
Germany
DAC	3.226 (1.906)	*	4.997 (2.996)	*
Included Cases	60		88
UK
DAC	3.251 (0.862)	***	−10.180 (3.953)	**
Included Cases	76		66
US
DAC	0.979 (0.559)	*	−1.977 (1.041)	*
Included Cases	249		280

Panel D: Test 3c: Earnings quality
Test Variables	2010		2011		2012		2013
Test Variables	Coefficients	Sig	Coefficients	Sig	Coefficients	Sig	Coefficients	Sig
Australia
R² adj	0.253		0.222		0.160		0.424
F test	18.980	***	16.409	***	10.326	***	37.864	***
OCF	0.003	***	0.226	***	−0.018	***	−0.104	***
OCF	(0.001)		(0.056)		(0.006)		(0.017)
Sample size	54		55		50		51
Germany
R² adj	0.443		0.148		0.315		0.214
F test	36.761	***	7.769	***	20.340	***	9.980	***
OCF	−0.451	***	−0.097	***	0.282	***	0.028	***
OCF	(0.074)		(0.035)		(0.062)		(0.009)
Sample size	46		40		43		34
UK
R² adj	0.442		0.309		0.187		0.200
F test	34.308	***	18.882	***	9.049	***	9.778	***
OCF	−2.206	***	−1.814	***	−0.126	***	−0.191	***
OCF	(0.377)		(0.418)		(0.042)		(0.061)
Sample size	43		41		36		36
US
R² adj	0.180		0.178		0.118		0.169
F test	38.605	***	36.686	***	23.292	***	35.462	***
OCF	4.858	***	−1.382	***	0.232	***	2.760	***
OCF	(0.782)		(0.228)		(0.048)		(0.464)
Sample size	172		166		168		170

Panel D: Test 3c: Earnings quality
Test Variables	2010		2011		2012		2013
Test Variables	Coefficients	Sig	Coefficients	Sig	Coefficients	Sig	Coefficients	Sig
Australia
R² adj	0.253		0.222		0.160		0.424
F test	18.980	***	16.409	***	10.326	***	37.864	***
OCF	0.003	***	0.226	***	−0.018	***	−0.104	***
OCF	(0.001)		(0.056)		(0.006)		(0.017)
Sample size	54		55		50		51
Germany
R² adj	0.443		0.148		0.315		0.214
F test	36.761	***	7.769	***	20.340	***	9.980	***
OCF	−0.451	***	−0.097	***	0.282	***	0.028	***
OCF	(0.074)		(0.035)		(0.062)		(0.009)
Sample size	46		40		43		34
UK
R² adj	0.442		0.309		0.187		0.200
F test	34.308	***	18.882	***	9.049	***	9.778	***
OCF	−2.206	***	−1.814	***	−0.126	***	−0.191	***
OCF	(0.377)		(0.418)		(0.042)		(0.061)
Sample size	43		41		36		36
US
R² adj	0.180		0.178		0.118		0.169
F test	38.605	***	36.686	***	23.292	***	35.462	***
OCF	4.858	***	−1.382	***	0.232	***	2.760	***
OCF	(0.782)		(0.228)		(0.048)		(0.464)
Sample size	172		166		168		170

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

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