Table IX. The logistic regression model...

Table IX.

The logistic regression model using CG factors

Variables in the equation*	B	Wald	Significance^**	Tolerance	VIF
SIZE	0.000	16.875	0.000	0.700	1.429
SEGMENTS	0.016	0.021	0.884	0.916	1.092
RECINV	0.021	5.793	0.016	0.901	1.110
OCF	0.028	4.418	0.036	0.879	1.137
RISKC	1.615	9.810	0.002	0.923	1.083
LEV	−0.005	0.280	0.597	0.784	1.276
DSH	−0.027	4.998	0.025	0.816	1.225
MSH	0.001	0.015	0.903	0.882	1.133
INDCH	−0.338	1.071	0.301	0.856	1.168
NODUALITY	0.881	1.522	0.217	0.837	1.195
CGFAC1	0.152	0.591	0.442	0.708	1.413
CGFAC2	0.701	11.997	0.001	0.686	1.457
BIG4	0.811	2.353	0.125	0.804	1.244
AUDITFEES	−0.313	0.154	0.695	0.825	1.212
Constant	−2.680	6.147	0.013
N	332		Pseudo R Square:
Model chi-square	171.027		Cox & Snell		0.403
Significance	0.000		Nagelkerke		0.548
Overall % correct	79.8

Variables in the equation*	B	Wald	Significance^**	Tolerance	VIF
SIZE	0.000	16.875	0.000	0.700	1.429
SEGMENTS	0.016	0.021	0.884	0.916	1.092
RECINV	0.021	5.793	0.016	0.901	1.110
OCF	0.028	4.418	0.036	0.879	1.137
RISKC	1.615	9.810	0.002	0.923	1.083
LEV	−0.005	0.280	0.597	0.784	1.276
DSH	−0.027	4.998	0.025	0.816	1.225
MSH	0.001	0.015	0.903	0.882	1.133
INDCH	−0.338	1.071	0.301	0.856	1.168
NODUALITY	0.881	1.522	0.217	0.837	1.195
CGFAC1	0.152	0.591	0.442	0.708	1.413
CGFAC2	0.701	11.997	0.001	0.686	1.457
BIG4	0.811	2.353	0.125	0.804	1.244
AUDITFEES	−0.313	0.154	0.695	0.825	1.212
Constant	−2.680	6.147	0.013
N	332		Pseudo R Square:
Model chi-square	171.027		Cox & Snell		0.403
Significance	0.000		Nagelkerke		0.548
Overall % correct	79.8

Notes:

New variables:

NODUALITY = 1 if the chairman is not also the CEO, 0 otherwise; CGFAC1 = the regression scores for the first component (independency) derived by PCA; CGFAC2 = the regression scores for the second component (audit committee effectiveness) derived by PCA.

p-Value (two-tailed)

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