Table 3 Univariate tests Abs_DA AbnCFO...

Table 3

Univariate tests

	Abs_DA	AbnCFO	AbnPROD	AbnDISX	Rm_PROXY
Panel A: Means
1. Non-failures	0.058	−0.057	0.088	0.111	0.080
2. Failures	0.068	−0.041	0.111	0.179	0.108
Difference (1) – (2)	−0.01	−0.016	0.023	−0.068	−0.028
t-stat	−2.836^***	−4.206^***	−2.877^***	−6.527^***	−4.152^***
Panel B: Medians
1. Non-failures	0.039	−0.042	0.082	0.075	0.053
2. Failures	0.042	−0.054	0.119	0.145	0.078
Difference (1) – (2)
Z-stat	−2.032^***	−3.809^***	−4.281^***	−7.040^***	−3.709^***

	Abs_DA	AbnCFO	AbnPROD	AbnDISX	Rm_PROXY
Panel A: Means
1. Non-failures	0.058	−0.057	0.088	0.111	0.080
2. Failures	0.068	−0.041	0.111	0.179	0.108
Difference (1) – (2)	−0.01	−0.016	0.023	−0.068	−0.028
t-stat	−2.836^***	−4.206^***	−2.877^***	−6.527^***	−4.152^***
Panel B: Medians
1. Non-failures	0.039	−0.042	0.082	0.075	0.053
2. Failures	0.042	−0.054	0.119	0.145	0.078
Difference (1) – (2)
Z-stat	−2.032^***	−3.809^***	−4.281^***	−7.040^***	−3.709^***

Note(s): Panel A presents the mean, and Panel B presents the median comparison tests for individual and aggregate measures of real earnings management across subsamples of failure (above median) and survivor (below median) firms. All variables are defined in Appendix

* Statistical significance at the 10% level

** Statistical significance at the 5% level

*** Statistical significance at the 1% level

Source(s): Table by authors

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