Table 8. Multivariate analysis of audit...

Table 8.

Multivariate analysis of audit fees and auditor industry leadership: Italy sample

Dependent variable is the natural logarithm of audit fees (N = 1,050)
	Model (1)		Model (2)		Model (3)
	Estimate	p-value	Estimate	p-value	Estimate	p-value
Panel A
Intercept	10.470	<0.001	10.266	<0.001	10.521	<0.001
SIZE	0.268	<0.001	0.272	<0.001	0.282	<0.001
CATA	0.628	0.015	0.647	0.014	0.653	0.013
QUICK	−0.216	<0.001	−0.219	<0.001	−0.212	<0.001
LEV	−0.489	0.118	−0.489	0.121	−0.469	0.138
ROA	−0.669	0.165	−0.667	0.178	−0.643	0.199
LOSS	0.108	0.178	0.102	0.205	0.097	0.228
σ (CFO)	−0.054	0.771	−0.066	0.718	−0.053	0.774
SALES GROWTH	−0.004	<0.001	−0.004	<0.001	−0.004	<0.001
TENURE	0.005	0.678	0.005	0.658	0.008	0.474
ACCR_1	0.037	0.051	0.035	0.070	0.035	0.069
BIGN	0.197	0.050	0.224	0.027	0.255	0.012
UNCLEAN OPINION	0.000	0.993	0.010	0.846	0.018	0.736
LABOR COST	−0.013	0.776	−0.009	0.858	−0.016	0.729
National Leader	0.205	0.002
Area Leader			0.114	0.079
City Leader					0.006	0.929
Industry and Year fixed effects	Included		Included		Included
Adj. R²	0.406		0.397		0.407
Panel B: test of difference in coefficients			Difference in coefficients	F-test (p-value)
National Leader = Area Leader			0.091	5.09 (0.024)

Dependent variable is the natural logarithm of audit fees (N = 1,050)
	Model (1)		Model (2)		Model (3)
	Estimate	p-value	Estimate	p-value	Estimate	p-value
Panel A
Intercept	10.470	<0.001	10.266	<0.001	10.521	<0.001
SIZE	0.268	<0.001	0.272	<0.001	0.282	<0.001
CATA	0.628	0.015	0.647	0.014	0.653	0.013
QUICK	−0.216	<0.001	−0.219	<0.001	−0.212	<0.001
LEV	−0.489	0.118	−0.489	0.121	−0.469	0.138
ROA	−0.669	0.165	−0.667	0.178	−0.643	0.199
LOSS	0.108	0.178	0.102	0.205	0.097	0.228
σ (CFO)	−0.054	0.771	−0.066	0.718	−0.053	0.774
SALES GROWTH	−0.004	<0.001	−0.004	<0.001	−0.004	<0.001
TENURE	0.005	0.678	0.005	0.658	0.008	0.474
ACCR_1	0.037	0.051	0.035	0.070	0.035	0.069
BIGN	0.197	0.050	0.224	0.027	0.255	0.012
UNCLEAN OPINION	0.000	0.993	0.010	0.846	0.018	0.736
LABOR COST	−0.013	0.776	−0.009	0.858	−0.016	0.729
National Leader	0.205	0.002
Area Leader			0.114	0.079
City Leader					0.006	0.929
Industry and Year fixed effects	Included		Included		Included
Adj. R²	0.406		0.397		0.407
Panel B: test of difference in coefficients			Difference incoefficients	F-test(p-value)
National Leader = Area Leader			0.091	5.09(0.024)

Notes:

Coefficient p-values in Panel A are two-tailed and robust standard errors are clustered by firm, following Peterson (2009). F-test p-values in Panel B are one-tailed. Refer to Appendix for variable definitions

[ViewLarge]

Sharing Unavailable