Table 7 Alternative audit report lag:...

Table 7

Alternative audit report lag: impact of global financial crisis

	(1)	(2)	(3)
Variables	PEG	MPEG	OJN
Panel A: year-to-year lag (including POSITIVE and NEGATIVE DAYS)
CONSTANT	0.076^***	0.133^***	0.113^***
CONSTANT	(10.139)	(19.218)	(23.321)
Y_T_Y_ARL	0.0002	0.0004^**	0.0004^**
Y_T_Y_ARL	(1.049)	(2.188)	(1.998)
BODSIZE	0.002	−0.004^**	−0.003^***
BODSIZE	(0.872)	(−2.238)	(−2.73)
INDDIR	−0.001	0.002	0.001
INDDIR	(−0.362)	(0.867)	(0.677)
CEODUAL	0.001	0.002^***	0.002^**
CEODUAL	(1.516)	(2.679)	(2.428)
BODMEET	0.001	0.003^***	0.002^**
BODMEET	(1.366)	(3.102)	(2.418)
BIGN	−0.004^**	−0.005^***	−0.005^***
BIGN	(−2.46)	(−3.274)	(−4.938)
GCOPIN	−0.009	0.006	0.013
GCOPIN	(−0.613)	(0.393)	(1.316)
OWNCON	−0.002	−0.003^**	−0.002^**
OWNCON	(−1.18)	(−2.016)	(−2.131)
ICWEAK	−0.002	−0.002	−0.005
ICWEAK	(−0.138)	(−0.242)	(−1.136)
SALEGR	−0.009^**	0.013^***	0.01^***
SALEGR	(−2.465)	(3.736)	(4.219)
LNSIZE	0.001^**	−0.003^***	−0.002^***
LNSIZE	(2.251)	(−10.621)	(−8.275)
LEV	0.015^***	0.026^***	0.022^***
LEV	(5.214)	(9.58)	(11.762)
BTM	0.054^***	0.044^***	0.037^***
BTM	(22.649)	(20.117)	(24.1)
ROA	−0.034^***	−0.042^***	0.011
ROA	(−2.912)	(−3.885)	(1.284)
LOSS	0.001	0.013^***	0.003^**
LOSS	(0.45)	(5.824)	(1.995)
BETA	0.003^***	0.006^***	0.005^***
BETA	(5.309)	(12.357)	(13.654)
ZSCORE	0.005^***	0.004^***	0.003^***
ZSCORE	(6.108)	(4.922)	(6.217)
INDUSTRY_FE	Yes	Yes	Yes
YEAR_FE	Yes	Yes	Yes
Observations	10,004	10,004	10,004
R-squared	0.185	0.25	0.324
Note(s): Standard errors are robust to heteroscedasticity and clustered by firm. t-values are in parentheses. ^*p < 0.01, ^p < 0.05, ^*p < 0.10. Variable definitions are reported in Appendix

	(1)	(2)	(3)
Variables	PEG	MPEG	OJN
Panel A: year-to-year lag (including POSITIVE and NEGATIVE DAYS)
CONSTANT	0.076^***	0.133^***	0.113^***
CONSTANT	(10.139)	(19.218)	(23.321)
Y_T_Y_ARL	0.0002	0.0004^**	0.0004^**
Y_T_Y_ARL	(1.049)	(2.188)	(1.998)
BODSIZE	0.002	−0.004^**	−0.003^***
BODSIZE	(0.872)	(−2.238)	(−2.73)
INDDIR	−0.001	0.002	0.001
INDDIR	(−0.362)	(0.867)	(0.677)
CEODUAL	0.001	0.002^***	0.002^**
CEODUAL	(1.516)	(2.679)	(2.428)
BODMEET	0.001	0.003^***	0.002^**
BODMEET	(1.366)	(3.102)	(2.418)
BIGN	−0.004^**	−0.005^***	−0.005^***
BIGN	(−2.46)	(−3.274)	(−4.938)
GCOPIN	−0.009	0.006	0.013
GCOPIN	(−0.613)	(0.393)	(1.316)
OWNCON	−0.002	−0.003^**	−0.002^**
OWNCON	(−1.18)	(−2.016)	(−2.131)
ICWEAK	−0.002	−0.002	−0.005
ICWEAK	(−0.138)	(−0.242)	(−1.136)
SALEGR	−0.009^**	0.013^***	0.01^***
SALEGR	(−2.465)	(3.736)	(4.219)
LNSIZE	0.001^**	−0.003^***	−0.002^***
LNSIZE	(2.251)	(−10.621)	(−8.275)
LEV	0.015^***	0.026^***	0.022^***
LEV	(5.214)	(9.58)	(11.762)
BTM	0.054^***	0.044^***	0.037^***
BTM	(22.649)	(20.117)	(24.1)
ROA	−0.034^***	−0.042^***	0.011
ROA	(−2.912)	(−3.885)	(1.284)
LOSS	0.001	0.013^***	0.003^**
LOSS	(0.45)	(5.824)	(1.995)
BETA	0.003^***	0.006^***	0.005^***
BETA	(5.309)	(12.357)	(13.654)
ZSCORE	0.005^***	0.004^***	0.003^***
ZSCORE	(6.108)	(4.922)	(6.217)
INDUSTRY_FE	Yes	Yes	Yes
YEAR_FE	Yes	Yes	Yes
Observations	10,004	10,004	10,004
R-squared	0.185	0.25	0.324
Note(s): Standard errors are robust to heteroscedasticity and clustered by firm. t-values are in parentheses. ^*p < 0.01, ^p < 0.05, ^*p < 0.10. Variable definitions are reported in Appendix

	(1)	(2)	(3)	(4)	(5)	(6)
	GFC = 1			GFC = 0
Variables	PEG	MPEG	OJN	PEG	MPEG	OJN
Panel B: impact of global financial crisis and cost of equity capital
CONSTANT	0.091^*	0.103^***	0.11^***	0.055^***	0.069^***	0.065^***
CONSTANT	(1.917)	(2.663)	(4.076)	(4.565)	(6.083)	(8.129)
LNARL	−0.010	0.011	0.009	0.006^***	0.011^***	0.008^***
LNARL	(−1.41)	(1.389)	(1.584)	(2.881)	(5.124)	(5.544)
BODSIZE	0.015^***	−0.005	−0.004	−0.001	−0.002	−0.002^*
BODSIZE	(2.602)	(−1.063)	(−1.139)	(−0.286)	(−1.294)	(−1.927)
INDDIR	0.005	−0.001	−0.001	−0.002	0.004	0.002
INDDIR	(0.491)	(−0.135)	(−0.234)	(−0.562)	(1.315)	(1.157)
CEODUAL	−0.001	0.003	0.002	0.002^*	0.002^**	0.001^**
CEODUAL	(−0.121)	(1.04)	(1.26)	(1.65)	(2.572)	(2.116)
BODMEET	0.002	0.009^***	0.005^**	0.001	0.002^*	0.001
BODMEET	(0.577)	(3.132)	(2.529)	(1.252)	(1.732)	(1.247)
BIGN	−0.003	−0.004	−0.006^**	−0.004^**	−0.005^***	−0.005^***
BIGN	(−0.719)	(−1.127)	(−2.071)	(−2.286)	(−2.892)	(−4.116)
GCOPIN	−0.004	0.058^**	0.029	−0.014	−0.026	0.002
GCOPIN	(−0.104)	(2.12)	(1.523)	(−0.834)	(−1.489)	(0.167)
OWNCON	−0.009	0.004	0.002	−0.001	−0.003^**	−0.002^**
OWNCON	(−1.015)	(0.521)	(0.32)	(−0.852)	(−2.051)	(−2.251)
ICWEAK	0.002	−0.001	−0.001	−0.001	−0.001	−0.001
ICWEAK	(0.486)	(−0.291)	(−0.811)	(−0.402)	(−0.28)	(−0.9)
SALEGR	−0.011	0.027^**	0.016^***	−0.009^**	0.009^**	0.008^***
SALEGR	(−0.897)	(2.207)	(2.584)	(−2.388)	(2.464)	(2.952)
LNSIZE	0.002	−0.003^***	−0.002^**	0.001^*	−0.003^***	−0.002^***
LNSIZE	(1.364)	(−3.193)	(−2.401)	(1.791)	(−8.38)	(−6.202)
LEV	0.015	0.034^***	0.025^***	0.016^***	0.023^***	0.021^***
LEV	(1.619)	(4.459)	(4.602)	(5.296)	(8.398)	(10.79)
BTM	0.045^***	0.015^***	0.014^***	0.057^***	0.05^***	0.042^***
BTM	(6.288)	(2.681)	(3.473)	(22.989)	(21.054)	(25.111)
ROA	−0.052	−0.008	0.006	−0.026^**	−0.05^***	0.01
ROA	(−1.526)	(−0.282)	(0.312)	(−2.195)	(−4.353)	(1.218)
LOSS	0.024^***	0.015^***	0.01^***	−0.004^*	0.012^***	0.001
LOSS	(3.709)	(2.779)	(2.835)	(−1.727)	(4.998)	(0.374)
BETA	0.01^***	0.015^***	0.012^***	0.002^***	0.004^***	0.003^***
BETA	(4.782)	(9.225)	(10.486)	(3.727)	(9.226)	(10.231)
ZSCORE	0.01^***	0.004^*	0.004^***	0.004^***	0.004^***	0.003^***
ZSCORE	(4.466)	(1.941)	(2.693)	(4.618)	(4.874)	(5.902)
INDUSTRY_FE	Yes	Yes	Yes	Yes	Yes	Yes
YEAR_FE	Yes	Yes	Yes	Yes	Yes	Yes
Observations	2,324	2,324	2,324	10,199	10,199	10,199
R-squared	0.167	0.268	0.326	0.193	0.268	0.336

	(1)	(2)	(3)	(4)	(5)	(6)
	GFC = 1			GFC = 0
Variables	PEG	MPEG	OJN	PEG	MPEG	OJN
Panel B: impact of global financial crisis and cost of equity capital
CONSTANT	0.091^*	0.103^***	0.11^***	0.055^***	0.069^***	0.065^***
CONSTANT	(1.917)	(2.663)	(4.076)	(4.565)	(6.083)	(8.129)
LNARL	−0.010	0.011	0.009	0.006^***	0.011^***	0.008^***
LNARL	(−1.41)	(1.389)	(1.584)	(2.881)	(5.124)	(5.544)
BODSIZE	0.015^***	−0.005	−0.004	−0.001	−0.002	−0.002^*
BODSIZE	(2.602)	(−1.063)	(−1.139)	(−0.286)	(−1.294)	(−1.927)
INDDIR	0.005	−0.001	−0.001	−0.002	0.004	0.002
INDDIR	(0.491)	(−0.135)	(−0.234)	(−0.562)	(1.315)	(1.157)
CEODUAL	−0.001	0.003	0.002	0.002^*	0.002^**	0.001^**
CEODUAL	(−0.121)	(1.04)	(1.26)	(1.65)	(2.572)	(2.116)
BODMEET	0.002	0.009^***	0.005^**	0.001	0.002^*	0.001
BODMEET	(0.577)	(3.132)	(2.529)	(1.252)	(1.732)	(1.247)
BIGN	−0.003	−0.004	−0.006^**	−0.004^**	−0.005^***	−0.005^***
BIGN	(−0.719)	(−1.127)	(−2.071)	(−2.286)	(−2.892)	(−4.116)
GCOPIN	−0.004	0.058^**	0.029	−0.014	−0.026	0.002
GCOPIN	(−0.104)	(2.12)	(1.523)	(−0.834)	(−1.489)	(0.167)
OWNCON	−0.009	0.004	0.002	−0.001	−0.003^**	−0.002^**
OWNCON	(−1.015)	(0.521)	(0.32)	(−0.852)	(−2.051)	(−2.251)
ICWEAK	0.002	−0.001	−0.001	−0.001	−0.001	−0.001
ICWEAK	(0.486)	(−0.291)	(−0.811)	(−0.402)	(−0.28)	(−0.9)
SALEGR	−0.011	0.027^**	0.016^***	−0.009^**	0.009^**	0.008^***
SALEGR	(−0.897)	(2.207)	(2.584)	(−2.388)	(2.464)	(2.952)
LNSIZE	0.002	−0.003^***	−0.002^**	0.001^*	−0.003^***	−0.002^***
LNSIZE	(1.364)	(−3.193)	(−2.401)	(1.791)	(−8.38)	(−6.202)
LEV	0.015	0.034^***	0.025^***	0.016^***	0.023^***	0.021^***
LEV	(1.619)	(4.459)	(4.602)	(5.296)	(8.398)	(10.79)
BTM	0.045^***	0.015^***	0.014^***	0.057^***	0.05^***	0.042^***
BTM	(6.288)	(2.681)	(3.473)	(22.989)	(21.054)	(25.111)
ROA	−0.052	−0.008	0.006	−0.026^**	−0.05^***	0.01
ROA	(−1.526)	(−0.282)	(0.312)	(−2.195)	(−4.353)	(1.218)
LOSS	0.024^***	0.015^***	0.01^***	−0.004^*	0.012^***	0.001
LOSS	(3.709)	(2.779)	(2.835)	(−1.727)	(4.998)	(0.374)
BETA	0.01^***	0.015^***	0.012^***	0.002^***	0.004^***	0.003^***
BETA	(4.782)	(9.225)	(10.486)	(3.727)	(9.226)	(10.231)
ZSCORE	0.01^***	0.004^*	0.004^***	0.004^***	0.004^***	0.003^***
ZSCORE	(4.466)	(1.941)	(2.693)	(4.618)	(4.874)	(5.902)
INDUSTRY_FE	Yes	Yes	Yes	Yes	Yes	Yes
YEAR_FE	Yes	Yes	Yes	Yes	Yes	Yes
Observations	2,324	2,324	2,324	10,199	10,199	10,199
R-squared	0.167	0.268	0.326	0.193	0.268	0.336

Note(s): Standard errors are robust to heteroscedasticity and clustered by firm. t-values are in parentheses. ^***p < 0.01, ^**p < 0.05, ^*p < 0.10. Variable definitions are reported in Appendix

Source(s): Created by authors

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