Table VIII. Logistic regression model...

Table VIII.

Logistic regression model

Variables in the model*	Hypothesis	Predicted sign	B	Wald	Significance^**	Tolerance	VIF
Variables in the model*	Hypothesis	Predicted sign	B	Wald	Significance^**	Tolerance	VIF	SIZE	H1	+	0.000	18.723	0.000	0.715	1.400
SEGMENTS	H2	+	0.030	0.076	0.783	0.920	1.086
RECINV	H3	+	0.021	5.706	0.017	0.900	1.111
OCF	H4	+	0.029	4.152	0.042	0.862	1.160
RISKC	H5	+	1.680	10.603	0.001	0.922	1.085
LEV	H6	+	−0.006	0.507	0.476	0.784	1.276
DSH	H7	∓	−0.027	4.891	0.027	0.833	1.200
MSH	H8	?	0.000	0.000	0.983	0.851	1.175
INDCH	H9	+	−0.274	0.709	0.400	0.875	1.143
INDDS	H10	+	−0.007	0.127	0.722	0.469	2.132
ACSIZE	H11a	+	0.587	4.044	0.044	0.549	1.820
ACIND	H11b	+	−0.005	0.171	0.679	0.553	1.807
ACEXP	H11c	+	0.014	3.986	0.046	0.917	1.091
ACMEET	H11d	+	0.374	5.735	0.017	0.751	1.332
BIG4	—	?	0.968	3.219	0.073	0.803	1.246
AUDITFEES	—	?	−0.506	0.365	0.546	0.824	1.214
Constant			−5.040	12.358	0.000
N	332		Pseudo R Square:
Model Chi-square	172.980		Cox & Snell			0.406
Significance	0.000		Nagelkerke			0.553
Overall Percentage Correct	80.7

Variables in the model*	Hypothesis	Predicted sign	B	Wald	Significance^**	Tolerance	VIF
Variables in the model*	Hypothesis	Predicted sign	B	Wald	Significance^**	Tolerance	VIF	SIZE	H1	+	0.000	18.723	0.000	0.715	1.400
SEGMENTS	H2	+	0.030	0.076	0.783	0.920	1.086
RECINV	H3	+	0.021	5.706	0.017	0.900	1.111
OCF	H4	+	0.029	4.152	0.042	0.862	1.160
RISKC	H5	+	1.680	10.603	0.001	0.922	1.085
LEV	H6	+	−0.006	0.507	0.476	0.784	1.276
DSH	H7	∓	−0.027	4.891	0.027	0.833	1.200
MSH	H8	?	0.000	0.000	0.983	0.851	1.175
INDCH	H9	+	−0.274	0.709	0.400	0.875	1.143
INDDS	H10	+	−0.007	0.127	0.722	0.469	2.132
ACSIZE	H11a	+	0.587	4.044	0.044	0.549	1.820
ACIND	H11b	+	−0.005	0.171	0.679	0.553	1.807
ACEXP	H11c	+	0.014	3.986	0.046	0.917	1.091
ACMEET	H11d	+	0.374	5.735	0.017	0.751	1.332
BIG4	—	?	0.968	3.219	0.073	0.803	1.246
AUDITFEES	—	?	−0.506	0.365	0.546	0.824	1.214
Constant			−5.040	12.358	0.000
N	332		Pseudo R Square:
Model Chi-square	172.980		Cox & Snell			0.406
Significance	0.000		Nagelkerke			0.553
Overall Percentage Correct	80.7

Notes:

Dependent variable (IAF existence) = 1 if the company has an IAF, 0 if the company does not;

SIZE = Total Assets; SEGMENTS = number of operating segments; RECINV = receivables and inventories divided by total assets; OCF = operating cash flows divided by total assets; RISKC = 1 if the company has a risk management committee, 0 otherwise; LEV = long-term debts divided by total assets; DSH = percentage of outstanding shares owned by directors; MSH = percentage of outstanding shares owned by the major (institutional) shareholders; NDCH = 1 if the chairman is independent, 0 otherwise; INDDS = percentage of independent directors on the board; ACSIZE = number of audit committee members; ACIND = percentage of independent directors on the audit committee; ACEXP = percentage of directors with financial expertise on the audit committee; ACMEET = number of audit committee meetings during the year; BIG4 = 1 when a Big 4 external auditor is used and 0 otherwise; AUDITFEES = total external audit fees divided by total assets;

p-Value (two-tailed)

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