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