Multivariate analysis of audit hours and auditor industry leadership Italy sample
| Dependent variable is the natural logarithm of audit hours (N = 1,123) | ||||||
|---|---|---|---|---|---|---|
| Model (1) | Model (2) | Model (3) | ||||
| Estimate | p-value | Estimate | p-value | Estimate | p-value | |
| Panel A | ||||||
| Intercept | 7.249 | <0.001 | 7.028 | <0.001 | 7.252 | <0.001 |
| SIZE | 0.280 | <0.001 | 0.284 | <0.001 | 0.290 | <0.001 |
| CATA | 0.753 | 0.002 | 0.766 | 0.003 | 0.771 | 0.002 |
| QUICK | −0.235 | <0.001 | −0.236 | <0.001 | −0.231 | <0.001 |
| LEV | −0.281 | 0.333 | −0.274 | 0.349 | −0.254 | 0.385 |
| ROA | −0.037 | 0.925 | −0.017 | 0.966 | 0.000 | 0.999 |
| LOSS | 0.161 | 0.012 | 0.157 | 0.015 | 0.152 | 0.019 |
| σ (CFO) | −0.012 | 0.940 | −0.023 | 0.884 | −0.017 | 0.915 |
| SALES GROWTH | −0.004 | <0.001 | −0.004 | <0.001 | −0.004 | <0.001 |
| TENURE | 0.000 | 0.969 | 0.001 | 0.927 | 0.004 | 0.743 |
| ACCR_1 | 0.017 | 0.336 | 0.015 | 0.400 | 0.015 | 0.398 |
| BIGN | 0.059 | 0.521 | 0.082 | 0.379 | 0.109 | 0.241 |
| UNCLEAN OPINION | 0.065 | 0.174 | 0.076 | 0.121 | 0.083 | 0.090 |
| LABOR COST | −0.027 | 0.364 | −0.023 | 0.460 | −0.030 | 0.322 |
| National Leader | 0.183 | 0.005 | ||||
| Area Leader | 0.101 | 0.094 | ||||
| City Leader | 0.014 | 0.832 | ||||
| Industry- and year-fixed effects | Included | Included | Included | |||
| Adj. R2 | 0.432 | 0.425 | 0.436 | |||
| Panel B: test of difference in coefficients | Difference in coefficients | F-test (p-value) | ||||
| National Leader = Area Leader | 0.082 | 3.97 (0.046) | ||||
| Dependent variable is the natural logarithm of audit hours ( | ||||||
|---|---|---|---|---|---|---|
| Model (1) | Model (2) | Model (3) | ||||
| Estimate | Estimate | Estimate | ||||
| Intercept | 7.249 | <0.001 | 7.028 | <0.001 | 7.252 | <0.001 |
| 0.280 | <0.001 | 0.284 | <0.001 | 0.290 | <0.001 | |
| 0.753 | 0.002 | 0.766 | 0.003 | 0.771 | 0.002 | |
| −0.235 | <0.001 | −0.236 | <0.001 | −0.231 | <0.001 | |
| −0.281 | 0.333 | −0.274 | 0.349 | −0.254 | 0.385 | |
| −0.037 | 0.925 | −0.017 | 0.966 | 0.000 | 0.999 | |
| 0.161 | 0.012 | 0.157 | 0.015 | 0.152 | 0.019 | |
| −0.012 | 0.940 | −0.023 | 0.884 | −0.017 | 0.915 | |
| −0.004 | <0.001 | −0.004 | <0.001 | −0.004 | <0.001 | |
| 0.000 | 0.969 | 0.001 | 0.927 | 0.004 | 0.743 | |
| 0.017 | 0.336 | 0.015 | 0.400 | 0.015 | 0.398 | |
| 0.059 | 0.521 | 0.082 | 0.379 | 0.109 | 0.241 | |
| 0.065 | 0.174 | 0.076 | 0.121 | 0.083 | 0.090 | |
| −0.027 | 0.364 | −0.023 | 0.460 | −0.030 | 0.322 | |
| Industry- and year-fixed effects | Included | Included | Included | |||
| Adj. | 0.432 | 0.425 | 0.436 | |||
| Difference in | F-test | |||||
| 0.082 | 3.97 | |||||
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
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