Table II. Descriptive statistics...

Table II.

Descriptive statistics

Variable	Mean	Median	Max	Min	Std. dev.
Panel A. Descriptive statistics (n = 663)
Dependent variables
Audit fee ($ millions)	4.024	0.894	96.600	0.225	11.958
Non-audit fee ($ millions)	1.610	0.190	33.200	0.000	5.006
Ratio of non-audit fee to total fee	0.190	0.177	0.671	0.000	0.138
Test variables
Affiliated alumni	0.057	0.000	1.000	0.000	0.233
Unaffiliated alumni	0.348	0.000	1.000	0.000	0.477
Affiliated alumni chair	0.027	0.000	1.000	0.000	0.163
Unaffiliated alumni chair	0.134	0.000	1.000	0.000	0.341
Control variables
Financial expert	0.164	0.000	1.000	0.000	0.371
Accounting expert	0.220	0.000	1.000	0.000	0.415
Financial expert chair	0.103	0.000	1.000	0.000	0.304
Accounting expert chair	0.139	0.000	1.000	0.000	0.346
CEO/chair duality	0.529	1.000	1.000	0.000	0.500
CEO is CPA	0.145	0.000	1.000	0.000	0.352
CFO is CPA	0.567	1.000	1.000	0.000	0.496
CFO affiliated with auditor	0.148	0.000	1.000	0.000	0.355
Log of boardsize	2.510	2.485	3.258	1.609	0.239
Board independence	0.828	0.857	1.000	0.000	0.108
Log of AC size	1.505	1.386	2.197	1.099	0.249
Proportion of women on AC	0.133	0.000	0.667	0.000	0.155
Log of total assets	7.171	7.007	9.373	6.009	0.676
Change in assets	0.092	0.051	1.430	−0.395	0.170
Impaired loans	0.011	0.007	0.112	0.000	0.013
Tier1 ratio	12.164	11.750	32.300	0.000	3.077
Commercial loans	0.190	0.168	0.709	0.000	0.122
Consumer loans	0.087	0.069	0.445	0.000	0.075
Real-estate loans	0.406	0.397	1.093	0.000	0.194
Other loans	0.002	0.000	0.059	0.000	0.008
Return on average assets	0.813	0.989	3.690	−15.038	1.139
Big 4 audit firm	0.857	1.000	1.000	0.000	0.351
Auditor change	0.044	0.000	1.000	0.000	0.205
M&A or restructuring	0.086	0.000	1.000	0.000	0.281
Material weakness	0.023	0.000	1.000	0.000	0.149
Restatement	0.092	0.000	1.000	0.000	0.289

Variable	Mean	Median	Max	Min	Std. dev.
Panel A. Descriptive statistics (n = 663)
Dependent variables
Audit fee ($ millions)	4.024	0.894	96.600	0.225	11.958
Non-audit fee ($ millions)	1.610	0.190	33.200	0.000	5.006
Ratio of non-audit fee to total fee	0.190	0.177	0.671	0.000	0.138
Test variables
Affiliated alumni	0.057	0.000	1.000	0.000	0.233
Unaffiliated alumni	0.348	0.000	1.000	0.000	0.477
Affiliated alumni chair	0.027	0.000	1.000	0.000	0.163
Unaffiliated alumni chair	0.134	0.000	1.000	0.000	0.341
Control variables
Financial expert	0.164	0.000	1.000	0.000	0.371
Accounting expert	0.220	0.000	1.000	0.000	0.415
Financial expert chair	0.103	0.000	1.000	0.000	0.304
Accounting expert chair	0.139	0.000	1.000	0.000	0.346
CEO/chair duality	0.529	1.000	1.000	0.000	0.500
CEO is CPA	0.145	0.000	1.000	0.000	0.352
CFO is CPA	0.567	1.000	1.000	0.000	0.496
CFO affiliated with auditor	0.148	0.000	1.000	0.000	0.355
Log of boardsize	2.510	2.485	3.258	1.609	0.239
Board independence	0.828	0.857	1.000	0.000	0.108
Log of AC size	1.505	1.386	2.197	1.099	0.249
Proportion of women on AC	0.133	0.000	0.667	0.000	0.155
Log of total assets	7.171	7.007	9.373	6.009	0.676
Change in assets	0.092	0.051	1.430	−0.395	0.170
Impaired loans	0.011	0.007	0.112	0.000	0.013
Tier1 ratio	12.164	11.750	32.300	0.000	3.077
Commercial loans	0.190	0.168	0.709	0.000	0.122
Consumer loans	0.087	0.069	0.445	0.000	0.075
Real-estate loans	0.406	0.397	1.093	0.000	0.194
Other loans	0.002	0.000	0.059	0.000	0.008
Return on average assets	0.813	0.989	3.690	−15.038	1.139
Big 4 audit firm	0.857	1.000	1.000	0.000	0.351
Auditor change	0.044	0.000	1.000	0.000	0.205
M&A or restructuring	0.086	0.000	1.000	0.000	0.281
Material weakness	0.023	0.000	1.000	0.000	0.149
Restatement	0.092	0.000	1.000	0.000	0.289

Panel B. Equality of means between alumni subsamples
	ALUMNI		Equality of means
	YES (n = 262)	NO (n = 401)	Equality of means
Variable	Mean	Mean	Sign.
Dependent variables
Audit fee ($ millions)	2.094	5.285	***
Non-audit fee ($ millions)	0.957	2.037	***
Ratio of non-audit fee to total fee	0.194	0.188
Control variables
CEO/chair duality	0.527	0.531
CEO is CPA	0.256	0.072	***
CFO is CPA	0.660	0.506	***
CFO affiliated with auditor	0.260	0.075	***
Log of boardsize	2.516	2.506
Board independence	0.834	0.824
Log of AC size	1.520	1.494
Proportion of women on AC	0.141	0.128
Log of total assets	7.143	7.189
Change in assets	0.101	0.085
Impaired loans	0.013	0.010	***
Tier1 ratio	12.133	12.184
Commercial loans	0.191	0.190
Consumer loans	0.086	0.087
Realestate loans	0.441	0.383	***
Other loans	0.001	0.003	**
Return on average assets	0.773	0.839
Big 4 audit firm	0.908	0.823	***
Auditor change	0.042	0.045
M&A or restructuring	0.027	0.125	***
Material weakness	0.008	0.032	**
Restatement	0.080	0.100

Notes:

All p-values two-tailed and calculated from a test of equality of means. *, ** and *** denote p < 0.1; p < 0.05; and p < 0.01, respectively

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Panel B. Equality of means between alumni subsamples
	ALUMNI		Equality of means
	YES(n = 262)	NO(n = 401)	Equality of means
Variable	Mean	Mean	Sign.
Dependent variables
Audit fee ($ millions)	2.094	5.285	***
Non-audit fee ($ millions)	0.957	2.037	***
Ratio of non-audit fee to total fee	0.194	0.188
Control variables
CEO/chair duality	0.527	0.531
CEO is CPA	0.256	0.072	***
CFO is CPA	0.660	0.506	***
CFO affiliated with auditor	0.260	0.075	***
Log of boardsize	2.516	2.506
Board independence	0.834	0.824
Log of AC size	1.520	1.494
Proportion of women on AC	0.141	0.128
Log of total assets	7.143	7.189
Change in assets	0.101	0.085
Impaired loans	0.013	0.010	***
Tier1 ratio	12.133	12.184
Commercial loans	0.191	0.190
Consumer loans	0.086	0.087
Realestate loans	0.441	0.383	***
Other loans	0.001	0.003	**
Return on average assets	0.773	0.839
Big 4 audit firm	0.908	0.823	***
Auditor change	0.042	0.045
M&A or restructuring	0.027	0.125	***
Material weakness	0.008	0.032	**
Restatement	0.080	0.100

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