Table III. Main analysis Dependent...

Table III.

Main analysis

Dependent variable	Non-audit fees to total fees ratio				Log of audit fee				Log of non-audit fee
	Model 1: Chair		Model 2: Directors		Model 1: Chair		Model 2: Directors		Model 1: Chair		Model 2: Directors
	Coef.	t-stat	Coef.	t-stat	Coef.	t-stat	Coef.	t-stat	Coef.	t-stat	Coef.	t-stat
Test variables
Affiliated alumni chair	0.128	3.004***			−0.148	−2.691***			−0.248	−0.544
Unaffiliated alumni chair	0.005	0.198			−0.034	−1.073			−0.473	−1.272

Affiliated alumni			0.067	1.427			−0.086	−1.811*			0.028	0.136
Unaffiliated alumni			−0.015	−0.588			−0.052	−1.260			−0.186	−0.973

Control Variables
Financial expert chair	−0.014	−0.555			−0.046	−1.261			−0.274	−0.716
Accounting expert chair	−0.016	−0.787			−0.016	−0.438			−0.139	−0.518
Financial expert			−0.005	−0.203			−0.064	−1.615			−0.471	−1.352
Accounting expert			−0.025	−1.057			−0.032	−0.885			−0.221	−0.624
CEO/chair duality	−0.031	−1.695*	−0.034	−1.788*	−0.057	−2.091**	−0.056	−2.075**	−0.279	−1.187	−0.272	−1.159
CEO is CPA	−0.057	−2.269**	−0.053	−2.073**	−0.024	−0.709	−0.017	−0.461	0.090	0.359	0.187	0.765
CFO is CPA	−0.030	−1.465	−0.029	−1.381	0.003	0.104	0.003	0.082	0.079	0.328	0.111	0.472
CFO affiliated with auditor	0.019	0.714	0.023	0.841	−0.061	−1.358	−0.054	−1.145	0.082	0.252	0.192	0.595
Log of boardsize	0.047	1.025	0.061	1.372	−0.053	−1.011	−0.052	−0.934	0.411	0.839	0.490	0.976
Board independence	−0.043	−0.583	−0.032	−0.413	0.202	2.124**	0.195	2.034**	−0.240	−0.268	−0.210	−0.236
Log of AC size	0.079	2.231**	0.082	2.211**	0.003	0.059	0.011	0.216	0.781	2.040**	0.825	2.126**
Proportion of women on AC	−0.002	−0.033	−0.010	−0.182	−0.034	−0.284	−0.019	−0.154	−0.678	−0.789	−0.599	−0.697
Log of total assets	0.067	2.775***	0.066	2.800***	0.679	18.968***	0.673	18.922***	1.360	5.010***	1.335	5.010***
Change in assets	−0.034	−0.504	−0.038	−0.559	0.094	0.996	0.075	0.764	−1.069	−1.378	−1.129	−1.494
Impaired loans	−0.744	−1.570	−0.576	−1.208	1.207	1.674*	1.044	1.462	−4.723	−0.801	−4.324	−0.702
Tier1 ratio	−0.004	−1.259	−0.004	−1.254	0.005	0.882	0.005	0.858	−0.064	−1.007	−0.068	−1.054
Commercial loans	0.143	1.600	0.138	1.551	0.077	0.445	0.129	0.733	3.759	2.570**	3.934	2.809***
Consumer loans	−0.077	−0.542	−0.036	−0.243	−0.010	−0.040	−0.005	−0.019	1.495	1.016	1.730	1.051
Real-estate loans	0.042	0.505	0.044	0.533	−0.127	−0.878	−0.102	−0.691	1.198	0.962	1.370	1.122
Other loans	−0.383	−0.347	−0.541	−0.483	1.706	0.732	1.628	0.678	0.545	0.058	−0.251	−0.023
Return on average assets	0.004	0.738	0.003	0.612	−0.002	−0.268	0.000	−0.051	−0.089	−1.493	−0.090	−1.382
Big 4 audit firm	−0.004	−0.195	−0.006	−0.281	0.074	2.329**	0.078	2.462**	−0.465	−1.521	−0.406	−1.419
Auditor change	−0.047	−1.795*	−0.047	−1.763*	0.006	0.224	0.007	0.283	−0.577	−1.720*	−0.555	−1.671*
M&A or restructuring	−0.040	−1.987**	−0.044	−2.100**	0.057	1.432	0.050	1.250	−0.220	−0.983	−0.358	−1.646
Material weakness	−0.021	−0.953	−0.026	−1.066	0.156	1.837*	0.145	1.705*	0.292	1.116	0.181	0.665
Restatement	−0.041	−1.902*	−0.037	−1.802*	0.029	0.896	0.029	0.907	−0.247	−1.005	−0.240	−0.998

Intercept	−0.413	−1.766*	−0.453	−1.926*	1.142	3.478***	1.179	3.663***	−6.466	−1.810*	−6.607	−1.905*
Bank type fixed effects		Yes		Yes		Yes		Yes		Yes		Yes
Year Fixed effects		Yes		Yes		Yes		Yes		Yes		Yes
βAFF_AUDITOR = βUNAFF_AUDITOR		p < 0.05		p < 0.1		p < 0.05		n.s.		n.s.		n.s.
N		663		663		663		663		663		663
Adj. R²		0.232		0.238		0.894		0.896		0.353		0.352

Dependent variable	Non-audit fees to total fees ratio				Log of audit fee				Log of non-audit fee
	Model 1: Chair		Model 2: Directors		Model 1: Chair		Model 2: Directors		Model 1: Chair		Model 2: Directors
	Coef.	t-stat	Coef.	t-stat	Coef.	t-stat	Coef.	t-stat	Coef.	t-stat	Coef.	t-stat
Test variables
Affiliated alumni chair	0.128	3.004***			−0.148	−2.691***			−0.248	−0.544
Unaffiliated alumni chair	0.005	0.198			−0.034	−1.073			−0.473	−1.272

Affiliated alumni			0.067	1.427			−0.086	−1.811*			0.028	0.136
Unaffiliated alumni			−0.015	−0.588			−0.052	−1.260			−0.186	−0.973

Control Variables
Financial expert chair	−0.014	−0.555			−0.046	−1.261			−0.274	−0.716
Accounting expert chair	−0.016	−0.787			−0.016	−0.438			−0.139	−0.518
Financial expert			−0.005	−0.203			−0.064	−1.615			−0.471	−1.352
Accounting expert			−0.025	−1.057			−0.032	−0.885			−0.221	−0.624
CEO/chair duality	−0.031	−1.695*	−0.034	−1.788*	−0.057	−2.091**	−0.056	−2.075**	−0.279	−1.187	−0.272	−1.159
CEO is CPA	−0.057	−2.269**	−0.053	−2.073**	−0.024	−0.709	−0.017	−0.461	0.090	0.359	0.187	0.765
CFO is CPA	−0.030	−1.465	−0.029	−1.381	0.003	0.104	0.003	0.082	0.079	0.328	0.111	0.472
CFO affiliated with auditor	0.019	0.714	0.023	0.841	−0.061	−1.358	−0.054	−1.145	0.082	0.252	0.192	0.595
Log of boardsize	0.047	1.025	0.061	1.372	−0.053	−1.011	−0.052	−0.934	0.411	0.839	0.490	0.976
Board independence	−0.043	−0.583	−0.032	−0.413	0.202	2.124**	0.195	2.034**	−0.240	−0.268	−0.210	−0.236
Log of AC size	0.079	2.231**	0.082	2.211**	0.003	0.059	0.011	0.216	0.781	2.040**	0.825	2.126**
Proportion of women on AC	−0.002	−0.033	−0.010	−0.182	−0.034	−0.284	−0.019	−0.154	−0.678	−0.789	−0.599	−0.697
Log of total assets	0.067	2.775***	0.066	2.800***	0.679	18.968***	0.673	18.922***	1.360	5.010***	1.335	5.010***
Change in assets	−0.034	−0.504	−0.038	−0.559	0.094	0.996	0.075	0.764	−1.069	−1.378	−1.129	−1.494
Impaired loans	−0.744	−1.570	−0.576	−1.208	1.207	1.674*	1.044	1.462	−4.723	−0.801	−4.324	−0.702
Tier1 ratio	−0.004	−1.259	−0.004	−1.254	0.005	0.882	0.005	0.858	−0.064	−1.007	−0.068	−1.054
Commercial loans	0.143	1.600	0.138	1.551	0.077	0.445	0.129	0.733	3.759	2.570**	3.934	2.809***
Consumer loans	−0.077	−0.542	−0.036	−0.243	−0.010	−0.040	−0.005	−0.019	1.495	1.016	1.730	1.051
Real-estate loans	0.042	0.505	0.044	0.533	−0.127	−0.878	−0.102	−0.691	1.198	0.962	1.370	1.122
Other loans	−0.383	−0.347	−0.541	−0.483	1.706	0.732	1.628	0.678	0.545	0.058	−0.251	−0.023
Return on average assets	0.004	0.738	0.003	0.612	−0.002	−0.268	0.000	−0.051	−0.089	−1.493	−0.090	−1.382
Big 4 audit firm	−0.004	−0.195	−0.006	−0.281	0.074	2.329**	0.078	2.462**	−0.465	−1.521	−0.406	−1.419
Auditor change	−0.047	−1.795*	−0.047	−1.763*	0.006	0.224	0.007	0.283	−0.577	−1.720*	−0.555	−1.671*
M&A or restructuring	−0.040	−1.987**	−0.044	−2.100**	0.057	1.432	0.050	1.250	−0.220	−0.983	−0.358	−1.646
Material weakness	−0.021	−0.953	−0.026	−1.066	0.156	1.837*	0.145	1.705*	0.292	1.116	0.181	0.665
Restatement	−0.041	−1.902*	−0.037	−1.802*	0.029	0.896	0.029	0.907	−0.247	−1.005	−0.240	−0.998

Intercept	−0.413	−1.766*	−0.453	−1.926*	1.142	3.478***	1.179	3.663***	−6.466	−1.810*	−6.607	−1.905*
Bank type fixed effects		Yes		Yes		Yes		Yes		Yes		Yes
Year Fixed effects		Yes		Yes		Yes		Yes		Yes		Yes
βAFF_AUDITOR = βUNAFF_AUDITOR		p < 0.05		p < 0.1		p < 0.05		n.s.		n.s.		n.s.
N		663		663		663		663		663		663
Adj. R²		0.232		0.238		0.894		0.896		0.353		0.352

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