Competition analysis
| Variable | N | Panel A China market | Panel B Taiwan market | ||
|---|---|---|---|---|---|
| Mean | Mean | t-statistic | p-value | ||
| HHI(4) | 15 | 0.203 | 0.098 | 17.234*** | 0.0000 |
| Abs DA | 15 | 0.052 | 0.069 | −2.417** | 0.0299 |
| Variable | Panel A | Panel B | |||
|---|---|---|---|---|---|
| Mean | Mean | ||||
| HHI(4) | 15 | 0.203 | 0.098 | 17.234 | 0.0000 |
| Abs DA | 15 | 0.052 | 0.069 | −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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