Table VI. Sensitivity analysis Non-audit...

Table VI.

Sensitivity analysis

	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: robust regression using least absolute values (LAV) regression
Affiliated alumni chair	0.132	4.536***			−0.128	−3.020***			0.266	3.022***
Unaffiliated alumni chair	−0.007	−0.335			−0.033	−1.485			−0.053	−0.762
Affiliated alumni			0.061	1.634			−0.142	−3.819***			0.080	0.836
Unaffiliated alumni			−0.015	−0.698			−0.057	−2.006**			−0.148	−1.836*

	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: robust regression using least absolute values (LAV) regression
Affiliated alumni chair	0.132	4.536***			−0.128	−3.020***			0.266	3.022***
Unaffiliated alumni chair	−0.007	−0.335			−0.033	−1.485			−0.053	−0.762
Affiliated alumni			0.061	1.634			−0.142	−3.819***			0.080	0.836
Unaffiliated alumni			−0.015	−0.698			−0.057	−2.006**			−0.148	−1.836*

Panel B: first differencing
	Non-audit fees to total fees ratio		Log of audit fee		Log of non-audit fee
	Model 1: Directors		Model 1: Directors		Model 1: Directors
	Coef.	t-stat	Coef.	t-stat	Coef.	t-stat
Δ Alumni change	0.014	0.650	−0.053	−1.681*	−0.387	−0.894

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. The standard errors used in the LAV regressions in Panel A are bootstrapped standard errors. Following Ettredge et al. (2014) we define change values in Panel B for the test variables and all continuous variables, whereas we keep dichotomous variables as in equation (1). All variables are as defined in Table I

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Panel B: first differencing
	Non-audit fees to total fees ratio		Log of audit fee		Log of non-audit fee
	Model 1: Directors		Model 1: Directors		Model 1: Directors
	Coef.	t-stat	Coef.	t-stat	Coef.	t-stat
Δ Alumni change	0.014	0.650	−0.053	−1.681*	−0.387	−0.894

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