Table 9. Multivariate analysis of audit...

Table 9.

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 (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 incoefficients	F-test(p-value)
National Leader = Area Leader			0.082	3.97(0.046)

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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