Table V. Additional analysis: the effect...

Table V.

Additional analysis: the effect of discretionary loan loss provisions

	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
Dependent variable	Coef.	t-stat	Coef.	t-stat	Coef.	t-stat	Coef.	t-stat	Coef.	t-stat	Coef.	t-stat
Panel A: high Loan Loss Provisions (higher than median)
Affiliated alumni chair	0.189	3.289***			−0.156	−2.240**			0.115	0.404
Unaffiliated alumni chair	0.000	0.019			−0.044	−1.041			−0.364	−1.538
Affiliated alumni			0.132	2.706***			−0.120	−1.900*			0.324	0.854
Unaffiliated alumni			−0.011	−0.422			−0.069	−1.400			−0.289	−0.824
Panel B: low loan loss provisions (lower than median)
Affiliated alumni chair	0.059	1.722*			−0.103	−1.961*			0.210	1.073
Unaffiliated alumni chair	−0.005	−0.132			−0.011	−0.272			−0.319	−1.309
Affiliated alumni			0.072	1.322			−0.128	−2.628***			0.121	0.280
Unaffiliated alumni			0.007	0.215			−0.057	−1.274			−0.279	−0.615

	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
Dependent variable	Coef.	t-stat	Coef.	t-stat	Coef.	t-stat	Coef.	t-stat	Coef.	t-stat	Coef.	t-stat
Panel A: high Loan Loss Provisions (higher than median)
Affiliated alumni chair	0.189	3.289***			−0.156	−2.240**			0.115	0.404
Unaffiliated alumni chair	0.000	0.019			−0.044	−1.041			−0.364	−1.538
Affiliated alumni			0.132	2.706***			−0.120	−1.900*			0.324	0.854
Unaffiliated alumni			−0.011	−0.422			−0.069	−1.400			−0.289	−0.824
Panel B: low loan loss provisions (lower than median)
Affiliated alumni chair	0.059	1.722*			−0.103	−1.961*			0.210	1.073
Unaffiliated alumni chair	−0.005	−0.132			−0.011	−0.272			−0.319	−1.309
Affiliated alumni			0.072	1.322			−0.128	−2.628***			0.121	0.280
Unaffiliated alumni			0.007	0.215			−0.057	−1.274			−0.279	−0.615

Notes:

All p-values are two-tailed. *, **, and *** denote p < 0.1, p < 0.05 and p < 0.01, respectively. The standard errors to calculate p-values are obtained after clustering observations from unique firms. Results are based on the same model as in Table III, but for brevity, the control variables are not tabulated. All variables are as defined in Table I

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