Emerald Publishing

Table 14

D&O insurance and management tone manipulation: heterogeneity in auditing quality

Variable	Abtone
Variable	(1) Big4 = 1	(2) Big4 = 0
D&O	0.009	0.007^**
D&O	(1.25)	(2.52)
Size	−0.004	0.006^***
Size	(−1.26)	(6.22)
Lev	0.007	−0.004
Lev	(0.22)	(−0.69)
Growth	0.003	0.000
Growth	(1.10)	(0.64)
Dir	0.065	0.020^*
Dir	(1.43)	(1.79)
Top1	−0.021	0.027^***
Top1	(−0.99)	(4.91)
ROE	−0.010	−0.010^*
ROE	(−0.27)	(−1.66)
Loss	−0.024	0.001
Loss	(−1.53)	(0.28)
OCF	−0.018	−0.011
OCF	(−0.34)	(−0.95)
LR	−0.008^**	−0.003^***
LR	(−2.32)	(−5.72)
Dual	0.010	0.001
Dual	(1.11)	(0.37)
BM	−0.008^***	−0.008^***
BM	(−2.78)	(−7.60)
Board	−0.004	0.015^***
Board	(−0.28)	(3.41)
_cons	−0.001	−0.191^***
_cons	(−0.01)	(−8.96)
Year	Yes	Yes
Industry	Yes	Yes
N	1300.000	19841.000
r2_a	0.194	0.088

Variable	Abtone
Variable	(1)Big4 = 1	(2)Big4 = 0
D&O	0.009	0.007^**
D&O	(1.25)	(2.52)
Size	−0.004	0.006^***
Size	(−1.26)	(6.22)
Lev	0.007	−0.004
Lev	(0.22)	(−0.69)
Growth	0.003	0.000
Growth	(1.10)	(0.64)
Dir	0.065	0.020^*
Dir	(1.43)	(1.79)
Top1	−0.021	0.027^***
Top1	(−0.99)	(4.91)
ROE	−0.010	−0.010^*
ROE	(−0.27)	(−1.66)
Loss	−0.024	0.001
Loss	(−1.53)	(0.28)
OCF	−0.018	−0.011
OCF	(−0.34)	(−0.95)
LR	−0.008^**	−0.003^***
LR	(−2.32)	(−5.72)
Dual	0.010	0.001
Dual	(1.11)	(0.37)
BM	−0.008^***	−0.008^***
BM	(−2.78)	(−7.60)
Board	−0.004	0.015^***
Board	(−0.28)	(3.41)
_cons	−0.001	−0.191^***
_cons	(−0.01)	(−8.96)
Year	Yes	Yes
Industry	Yes	Yes
N	1300.000	19841.000
r2_a	0.194	0.088

Note(s): ^***, ^**, and ^* denote statistical significance at the 1%, 5%, and 10% levels, respectively. Numbers in parentheses are the t-values

Source(s): Table by authors