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 | Estimate | Estimate | ||||
| Intercept | 10.656 | 0.000 | 10.516 | 0.000 | 12.696 | 0.075 |
| 0.295 | 0.000 | 0.292 | 0.000 | 0.295 | 0.000 | |
| 0.842 | 0.011 | 0.873 | 0.012 | 1.019 | 0.004 | |
| −0.187 | 0.000 | −0.214 | 0.001 | −0.249 | 0.000 | |
| −0.480 | 0.247 | −0.546 | 0.171 | −0.956 | 0.028 | |
| −1.179 | 0.082 | −1.330 | 0.033 | −2.032 | 0.014 | |
| 0.043 | 0.670 | 0.015 | 0.877 | −0.017 | 0.850 | |
| −0.314 | 0.265 | 0.075 | 0.791 | −0.272 | 0.375 | |
| −0.051 | 0.541 | −0.075 | 0.447 | −0.006 | 0.944 | |
| 0.004 | 0.758 | 0.000 | 0.995 | 0.003 | 0.825 | |
| 0.019 | 0.460 | 0.000 | 0.993 | 0.030 | 0.274 | |
| Omitted | Omitted | 0.474 | 0.004 | |||
| 0.038 | 0.520 | 0.039 | 0.567 | −0.002 | 0.981 | |
| −0.018 | 0.743 | −0.016 | 0.804 | −0.047 | 0.780 | |
| 0.237 | 0.002 | |||||
| 0.138 | 0.063 | |||||
| −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 | |||
| 583 | 593 | 610 | ||||
| Adj. | 0.357 | 0.340 | 0.402 | |||
| Intercept | 7.479 | 0.000 | 6.684 | 0.000 | 9.651 | 0.118 |
| 0.299 | 0.000 | 0.287 | 0.000 | 0.298 | 0.000 | |
| 1.037 | 0.003 | 0.982 | 0.006 | 1.138 | 0.001 | |
| −0.251 | 0.000 | −0.262 | 0.001 | −0.270 | 0.000 | |
| −0.332 | 0.373 | −0.412 | 0.291 | −0.644 | 0.108 | |
| −0.077 | 0.907 | 0.224 | 0.741 | −0.659 | 0.441 | |
| 0.159 | 0.064 | 0.158 | 0.058 | 0.146 | 0.081 | |
| 0.087 | 0.717 | 0.012 | 0.963 | −0.171 | 0.512 | |
| −0.075 | 0.072 | −0.005 | 0.958 | 0.010 | 0.913 | |
| −0.001 | 0.940 | 0.003 | 0.832 | 0.004 | 0.771 | |
| −0.001 | 0.981 | −0.007 | 0.781 | 0.010 | 0.696 | |
| Omitted | Omitted | 0.121 | 0.258 | |||
| 0.100 | 0.068 | 0.043 | 0.484 | 0.007 | 0.909 | |
| −0.039 | 0.260 | −0.017 | 0.659 | −0.081 | 0.577 | |
| 0.195 | 0.009 | |||||
| 0.082 | 0.268 | |||||
| 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 | |||
| 617 | 645 | 648 | ||||
| Adj. | 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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