Table III. Ten equal levels of data...

Table III.

Ten equal levels of data sorted by adjusted LI

Panel A: China Market			Panel B: Taiwan Market
Decile	Mean	Abs DA	Mean	Abs DA
1 Low Adj-LI	−0.138	0.070	−0.639	0.078
2	0.024	0.061	−0.033	0.097
3	0.055	0.050	0.016	0.052
4	0.079	0.055	0.041	0.039
5	0.107	0.054	0.067	0.031
6	0.143	0.042	0.100	0.036
7	0.172	0.049	0.122	0.040
8	0.197	0.041	0.157	0.032
9	0.230	0.040	0.227	0.048
10 High Adj-LI	0.310	0.047	0.522	0.026
Difference between Abs DAof the highest and lowest Adj-LI after t-test		−0.029	Difference between Abs DA of the highest andlowest Adj-LI after t-test −0.052
Standard t-statistic (−1.767)*			Standard t-statistic (−2.240)**

Panel A: China Market			Panel B: Taiwan Market
Decile	Mean	Abs DA	Mean	Abs DA
1 Low Adj-LI	−0.138	0.070	−0.639	0.078
2	0.024	0.061	−0.033	0.097
3	0.055	0.050	0.016	0.052
4	0.079	0.055	0.041	0.039
5	0.107	0.054	0.067	0.031
6	0.143	0.042	0.100	0.036
7	0.172	0.049	0.122	0.040
8	0.197	0.041	0.157	0.032
9	0.230	0.040	0.227	0.048
10 High Adj-LI	0.310	0.047	0.522	0.026
Difference between Abs DAof the highest and lowest Adj-LI after t-test		−0.029	Difference between Abs DA of the highest andlowest Adj-LI after t-test −0.052
Standard t-statistic (−1.767)*			Standard t-statistic (−2.240)**

Notes:

We sorted the data from Table II into ten equal levels based on the value of the market power adjusted LI and the absolute value of earnings management discretionary accruals; Abs DA means absolute value of discretionary accruals; We calculated the average Abs DA difference between Decile 10 and Decile 1 and then used t-statistic test to determine whether it is non-zero; ***,

** and

*denote 1%, 5%, and 10% significance level, respectively

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