Table 12. Multivariate analysis of audit...

Table 12.

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

Dependent variable is the natural logarithm of audit fees (N = 2,910)
	Model (1)		Model (2)		Model (3)
	Estimate	p-value	Estimate	p-value	Estimate	p-value
Panel A
Intercept	2.162	0.000	2.134	0.000	2.213	0.000
SIZE	0.492	0.000	0.493	0.000	0.493	0.000
CATA	0.023	0.852	0.027	0.825	0.022	0.857
QUICK	−0.036	0.001	−0.037	0.000	−0.036	0.001
LEV	0.262	0.079	0.253	0.088	0.244	0.104
ROA	−0.485	0.000	−0.473	0.001	−0.467	0.001
LOSS	0.082	0.019	0.082	0.020	0.087	0.014
σ (CFO)	−0.047	0.183	−0.051	0.146	−0.049	0.171
SALES GROWTH	−0.028	0.000	−0.028	0.000	−0.029	0.000
TENURE	0.018	0.001	0.018	0.001	0.019	0.001
ACCR_1	0.005	0.606	0.006	0.581	0.005	0.608
BIGN	0.113	0.021	0.113	0.021	0.130	0.007
UNCLEAN OPINION	0.110	0.016	0.109	0.019	0.101	0.028
LABOR COST	−0.003	0.482	−0.003	0.469	−0.003	0.433
National Leader	0.145	0.002
Area Leader			0.122	0.027
City Leader					0.057	0.227
Industry- and year-fixed effects	Included		Included		Included
Adj. R²	0.819		0.819		0.818
Panel B : test of difference in coefficients			Difference in coefficients	F-test (p-value)
National Leader = Area Leader			0.023	0.79 0.373

Dependent variable is the natural logarithm of audit fees (N = 2,910)
	Model (1)		Model (2)		Model (3)
	Estimate	p-value	Estimate	p-value	Estimate	p-value
Panel A
Intercept	2.162	0.000	2.134	0.000	2.213	0.000
SIZE	0.492	0.000	0.493	0.000	0.493	0.000
CATA	0.023	0.852	0.027	0.825	0.022	0.857
QUICK	−0.036	0.001	−0.037	0.000	−0.036	0.001
LEV	0.262	0.079	0.253	0.088	0.244	0.104
ROA	−0.485	0.000	−0.473	0.001	−0.467	0.001
LOSS	0.082	0.019	0.082	0.020	0.087	0.014
σ (CFO)	−0.047	0.183	−0.051	0.146	−0.049	0.171
SALES GROWTH	−0.028	0.000	−0.028	0.000	−0.029	0.000
TENURE	0.018	0.001	0.018	0.001	0.019	0.001
ACCR_1	0.005	0.606	0.006	0.581	0.005	0.608
BIGN	0.113	0.021	0.113	0.021	0.130	0.007
UNCLEAN OPINION	0.110	0.016	0.109	0.019	0.101	0.028
LABOR COST	−0.003	0.482	−0.003	0.469	−0.003	0.433
National Leader	0.145	0.002
Area Leader			0.122	0.027
City Leader					0.057	0.227
Industry- and year-fixed effects	Included		Included		Included
Adj. R²	0.819		0.819		0.818
Panel B : test of difference in coefficients			Difference incoefficients	F-test(p-value)
National Leader = Area Leader			0.023	0.790.373

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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