Table V.

Competition analysis

VariableNPanel A
China market
Panel B
Taiwan market
MeanMeant-statisticp-value
HHI(4)150.2030.09817.234***0.0000
Abs DA150.0520.069−2.417**0.0299

Notes:

HHI means a measure of market concentration; Panel A shows if the difference of HHI between China and Taiwan is different from zero; Panel B shows if the difference of HHI between China and Taiwan is different from zero;

***,

** and *denote 1%, 5%, 10% significance level, respectively; we examined the impact of market competition on earnings management discretionary accruals using HHI as a measure of market concentration

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