Table 1 Multiple regression of earnings...

Table 1

Multiple regression of earnings opacity on CSR

	${AVOIDANCE_LOSS}_{it}$	${SMOOTHING}_{it}$	ABS_DAC_it
	${AVOIDANCE_LOSS}_{it}$	${SMOOTHING}_{it}$	${ABS_DAC_MJ}_{it}$	$ABS_{DAC_K}_{it}$
${CSRI}_{it}$	0.066**	0.116***	0.244***	0.216**
${CSRI}_{it}$	[2.411]	[3.558]	[2.861]	[2.557]
${ROA}_{it - 1}$	−1.458***	0.273*	−1.387***	−1.057**
${ROA}_{it - 1}$	[−10.149]	[1.917]	[−3.485]	[−2.512]
${LEV}_{it - 1}$	−0.074*	−0.054	−0.733***	−0.741***
${LEV}_{it - 1}$	[−1.817]	[−1.235]	[−6.514]	[−6.564]
${M / B}_{it - 1}$	−0.040**	0.035**	0.496***	0.468***
${M / B}_{it - 1}$	[−2.570]	[2.239]	[10.589]	[10.041]
${SIZE}_{it - 1}$	−0.022***	−0.016***	−0.292***	−0.276***
${SIZE}_{it - 1}$	[−4.678]	[−2.737]	[−14.954]	[−14.294]
${AGE}_{it - 1}$	0.007***	0.004	0.011*	0.011*
${AGE}_{it - 1}$	[3.508]	[1.344]	[1.911]	[1.900]
${BIG 4}_{i, t}$	−0.004	−0.017	0.038	0.022
${BIG 4}_{i, t}$	[−0.293]	[−0.912]	[0.892]	[0.530]
${DUAL}_{it}$	0.000	−0.056***	−0.054	−0.072*
${DUAL}_{it}$	[0.012]	[−2.740]	[−1.407]	[−1.884]
${LOSS}_{it}$	0.045	0.033	0.674**	0.597**
${LOSS}_{it}$	[0.520]	[0.376]	[2.268]	[2.025]
Constant	0.758***	0.716***	9.808***	9.346***
Constant	[5.946]	[4.624]	[17.096]	[16.404]
Observations	3,246	2,152	3,246	3,246
Year/Industry dummies	YES	YES	YES	YES
Adj. R²	0.136	0.0390	0.260	0.257
F-value	20.93***	5.274***	34.31***	39.29***

	${AVOIDANCE_LOSS}_{it}$	${SMOOTHING}_{it}$	ABS_DAC_it
	${AVOIDANCE_LOSS}_{it}$	${SMOOTHING}_{it}$	${ABS_DAC_MJ}_{it}$	$ABS_{DAC_K}_{it}$
${CSRI}_{it}$	0.066**	0.116***	0.244***	0.216**
${CSRI}_{it}$	[2.411]	[3.558]	[2.861]	[2.557]
${ROA}_{it - 1}$	−1.458***	0.273*	−1.387***	−1.057**
${ROA}_{it - 1}$	[−10.149]	[1.917]	[−3.485]	[−2.512]
${LEV}_{it - 1}$	−0.074*	−0.054	−0.733***	−0.741***
${LEV}_{it - 1}$	[−1.817]	[−1.235]	[−6.514]	[−6.564]
${M / B}_{it - 1}$	−0.040**	0.035**	0.496***	0.468***
${M / B}_{it - 1}$	[−2.570]	[2.239]	[10.589]	[10.041]
${SIZE}_{it - 1}$	−0.022***	−0.016***	−0.292***	−0.276***
${SIZE}_{it - 1}$	[−4.678]	[−2.737]	[−14.954]	[−14.294]
${AGE}_{it - 1}$	0.007***	0.004	0.011*	0.011*
${AGE}_{it - 1}$	[3.508]	[1.344]	[1.911]	[1.900]
${BIG 4}_{i, t}$	−0.004	−0.017	0.038	0.022
${BIG 4}_{i, t}$	[−0.293]	[−0.912]	[0.892]	[0.530]
${DUAL}_{it}$	0.000	−0.056***	−0.054	−0.072*
${DUAL}_{it}$	[0.012]	[−2.740]	[−1.407]	[−1.884]
${LOSS}_{it}$	0.045	0.033	0.674**	0.597**
${LOSS}_{it}$	[0.520]	[0.376]	[2.268]	[2.025]
Constant	0.758***	0.716***	9.808***	9.346***
Constant	[5.946]	[4.624]	[17.096]	[16.404]
Observations	3,246	2,152	3,246	3,246
Year/Industry dummies	YES	YES	YES	YES
Adj. R²	0.136	0.0390	0.260	0.257
F-value	20.93***	5.274***	34.31***	39.29***

Note(s): All test statistics and significance levels are computed using standard errors adjusted through a two-dimensional clustering approach at both the firm and year levels (Petersen, 2008). All variables are defined in Appendix 1. ***, ** and * denote statistical significance at the 1, 5 and 10% confidence levels, respectively. This table presents OLS regression results of Equation (4) as below

${E A R N I N G S_OPACITY}_{it} = β_{0} + β_{1} {CSRI}_{it} + β_{2} {ROA}_{it - 1} + β_{3} {LEV}_{it - 1} + β_{4} {M / B}_{it - 1} + β_{5} {SIZE}_{it - 1} + β_{6} {AGE}_{it - 1} + β_{7} {BIG 4}_{it} + β_{8} {DUAL}_{it} + β_{9} {LOSS}_{it} + \sum_{k} β_{k} {YEA R_{DUMMY}}_{it} + \sum_{j} β_{j} {INDUSTR Y_{DUMMY}}_{it} + ε_{it}$

Source(s): The table is created by authors

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