Table 13. PSM for audit fees (Panel A)...

Table 13.

PSM for audit fees (Panel A) and hours (Panel B) – Italy sample

Dependent variable is the natural logarithm of audit fees
	Model (1)		Model (2)		Model (3)
	Estimate	p-value	Estimate	p-value	Estimate	p-value
Panel A
Intercept	10.656	0.000	10.516	0.000	12.696	0.075
SIZE	0.295	0.000	0.292	0.000	0.295	0.000
CATA	0.842	0.011	0.873	0.012	1.019	0.004
QUICK	−0.187	0.000	−0.214	0.001	−0.249	0.000
LEV	−0.480	0.247	−0.546	0.171	−0.956	0.028
ROA	−1.179	0.082	−1.330	0.033	−2.032	0.014
LOSS	0.043	0.670	0.015	0.877	−0.017	0.850
σ (CFO)	−0.314	0.265	0.075	0.791	−0.272	0.375
SALES GROWTH	−0.051	0.541	−0.075	0.447	−0.006	0.944
TENURE	0.004	0.758	0.000	0.995	0.003	0.825
ACCR_1	0.019	0.460	0.000	0.993	0.030	0.274
BIGN	Omitted		Omitted		0.474	0.004
UNCLEAN OPINION	0.038	0.520	0.039	0.567	−0.002	0.981
LABOR COST	−0.018	0.743	−0.016	0.804	−0.047	0.780
National Leader	0.237	0.002
Area Leader			0.138	0.063
City Leader					−0.047	0.549
Industry- and year-fixed effects	Included		Included		Included
Mean bias	From 23.5 to 2.9		From 26.2 to 5.2		From 26.1 to 3.1
N	583		593		610
Adj. R²	0.357		0.340		0.402
Panel B
Intercept	7.479	0.000	6.684	0.000	9.651	0.118
SIZE	0.299	0.000	0.287	0.000	0.298	0.000
CATA	1.037	0.003	0.982	0.006	1.138	0.001
QUICK	−0.251	0.000	−0.262	0.001	−0.270	0.000
LEV	−0.332	0.373	−0.412	0.291	−0.644	0.108
ROA	−0.077	0.907	0.224	0.741	−0.659	0.441
LOSS	0.159	0.064	0.158	0.058	0.146	0.081
σ (CFO)	0.087	0.717	0.012	0.963	−0.171	0.512
SALES GROWTH	−0.075	0.072	−0.005	0.958	0.010	0.913
TENURE	−0.001	0.940	0.003	0.832	0.004	0.771
ACCR_1	−0.001	0.981	−0.007	0.781	0.010	0.696
BIGN	Omitted		Omitted		0.121	0.258
UNCLEAN OPINION	0.100	0.068	0.043	0.484	0.007	0.909
LABOR COST	−0.039	0.260	−0.017	0.659	−0.081	0.577
National Leader	0.195	0.009
Area Leader			0.082	0.268
City Leader					0.028	0.704
Industry- and year-fixed effects	Included		Included		Included
Mean bias	From 23.5 to 3.2		From 26.2 to 5.4		From 26.1 to 5.6
N	617		645		648
Adj. R²	0.412		0.342		0.431

Dependent variable is the natural logarithm of audit fees
	Model (1)		Model (2)		Model (3)
	Estimate	p-value	Estimate	p-value	Estimate	p-value
Panel A
Intercept	10.656	0.000	10.516	0.000	12.696	0.075
SIZE	0.295	0.000	0.292	0.000	0.295	0.000
CATA	0.842	0.011	0.873	0.012	1.019	0.004
QUICK	−0.187	0.000	−0.214	0.001	−0.249	0.000
LEV	−0.480	0.247	−0.546	0.171	−0.956	0.028
ROA	−1.179	0.082	−1.330	0.033	−2.032	0.014
LOSS	0.043	0.670	0.015	0.877	−0.017	0.850
σ (CFO)	−0.314	0.265	0.075	0.791	−0.272	0.375
SALES GROWTH	−0.051	0.541	−0.075	0.447	−0.006	0.944
TENURE	0.004	0.758	0.000	0.995	0.003	0.825
ACCR_1	0.019	0.460	0.000	0.993	0.030	0.274
BIGN	Omitted		Omitted		0.474	0.004
UNCLEAN OPINION	0.038	0.520	0.039	0.567	−0.002	0.981
LABOR COST	−0.018	0.743	−0.016	0.804	−0.047	0.780
National Leader	0.237	0.002
Area Leader			0.138	0.063
City Leader					−0.047	0.549
Industry- and year-fixed effects	Included		Included		Included
Mean bias	From 23.5 to 2.9		From 26.2 to 5.2		From 26.1 to 3.1
N	583		593		610
Adj. R²	0.357		0.340		0.402
Panel B
Intercept	7.479	0.000	6.684	0.000	9.651	0.118
SIZE	0.299	0.000	0.287	0.000	0.298	0.000
CATA	1.037	0.003	0.982	0.006	1.138	0.001
QUICK	−0.251	0.000	−0.262	0.001	−0.270	0.000
LEV	−0.332	0.373	−0.412	0.291	−0.644	0.108
ROA	−0.077	0.907	0.224	0.741	−0.659	0.441
LOSS	0.159	0.064	0.158	0.058	0.146	0.081
σ (CFO)	0.087	0.717	0.012	0.963	−0.171	0.512
SALES GROWTH	−0.075	0.072	−0.005	0.958	0.010	0.913
TENURE	−0.001	0.940	0.003	0.832	0.004	0.771
ACCR_1	−0.001	0.981	−0.007	0.781	0.010	0.696
BIGN	Omitted		Omitted		0.121	0.258
UNCLEAN OPINION	0.100	0.068	0.043	0.484	0.007	0.909
LABOR COST	−0.039	0.260	−0.017	0.659	−0.081	0.577
National Leader	0.195	0.009
Area Leader			0.082	0.268
City Leader					0.028	0.704
Industry- and year-fixed effects	Included		Included		Included
Mean bias	From 23.5 to 3.2		From 26.2 to 5.4		From 26.1 to 5.6
N	617		645		648
Adj. R²	0.412		0.342		0.431

Notes:

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

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