Table 4 Regression analysis of...

Table 4

Regression analysis of informational efficiency on readability indices

Variable	(1) IE5	(2) IE10	(3) IE5	(4) IE10	(5) IE5	(6) IE10
Fog	−0.009***	−0.008***
Fog	(0.002)	(0.002)
FK			−0.006***	−0.005***
FK			(0.001)	(0.001)
SMOG					−0.013***	−0.011***
SMOG					(0.003)	(0.003)
B_SIZE	−0.100***	−0.081***	−0.103***	−0.084***	−0.103***	−0.083***
B_SIZE	(0.032)	(0.028)	(0.032)	(0.028)	(0.032)	(0.028)
B_IND	0.113***	0.105***	0.111***	0.103***	0.112***	0.105***
B_IND	(0.031)	(0.028)	(0.031)	(0.028)	(0.031)	(0.028)
InstOwn	0.052**	0.026	0.043*	0.018	0.050**	0.024
InstOwn	(0.023)	(0.021)	(0.023)	(0.020)	(0.023)	(0.021)
AudType	−0.074	−0.050	−0.076	−0.052	−0.073	−0.049
AudType	(0.089)	(0.080)	(0.089)	(0.079)	(0.089)	(0.080)
LnFee	−0.001	0.009	−0.003	0.007	−0.000	0.009
LnFee	(0.011)	(0.010)	(0.011)	(0.010)	(0.011)	(0.010)
AudChange	−0.015	−0.012	−0.016	−0.013	−0.015	−0.012
AudChange	(0.013)	(0.011)	(0.013)	(0.011)	(0.013)	(0.011)
AudTenure	−0.004	−0.001	−0.004	−0.001	−0.004	−0.001
AudTenure	(0.004)	(0.003)	(0.004)	(0.003)	(0.004)	(0.003)
AudOpin	0.002	0.010	−0.004	0.005	0.001	0.009
AudOpin	(0.013)	(0.012)	(0.013)	(0.012)	(0.013)	(0.012)
ARL	0.001*	0.000	0.000	0.000	0.001*	0.000
ARL	(0.000)	(0.000)	(0.000)	(0.000)	(0.000)	(0.000)
Accruals	−0.071	−0.061	−0.059	−0.050	−0.072	−0.061
Accruals	(0.050)	(0.044)	(0.049)	(0.044)	(0.050)	(0.044)
Size	0.021	0.023*	0.018	0.020	0.020	0.021*
Size	(0.014)	(0.013)	(0.014)	(0.013)	(0.014)	(0.013)
AssetGrowth	0.045***	0.029**	0.052***	0.034**	0.045***	0.029*
AssetGrowth	(0.016)	(0.015)	(0.016)	(0.015)	(0.016)	(0.015)
InvRec	0.103***	0.063*	0.098**	0.058*	0.101***	0.061*
InvRec	(0.039)	(0.035)	(0.039)	(0.034)	(0.039)	(0.035)
∆Lev	−0.217***	−0.130***	−0.213***	−0.126***	−0.217***	−0.130***
∆Lev	(0.039)	(0.035)	(0.039)	(0.034)	(0.039)	(0.035)
ROA	−0.210*	−0.148	−0.227**	−0.163*	−0.203*	−0.143
ROA	(0.109)	(0.097)	(0.108)	(0.096)	(0.109)	(0.097)
Loss	0.009	0.004	0.008	0.003	0.011	0.005
Loss	(0.020)	(0.018)	(0.020)	(0.018)	(0.020)	(0.018)
Segment	0.012	0.002	0.012	0.002	0.012	0.003
Segment	(0.011)	(0.010)	(0.011)	(0.010)	(0.011)	(0.010)
ALTZ	0.020	0.015	0.021	0.016	0.020	0.015
ALTZ	(0.016)	(0.014)	(0.016)	(0.014)	(0.016)	(0.014)
LnAge	−0.010	−0.007	−0.005	−0.002	−0.010	−0.006
LnAge	(0.016)	(0.014)	(0.016)	(0.014)	(0.016)	(0.014)
Aturn	−0.034*	−0.035**	−0.030*	−0.032**	−0.033*	−0.034**
Aturn	(0.017)	(0.016)	(0.017)	(0.015)	(0.017)	(0.016)
FogFS	0.003**	0.003**	0.003**	0.003*	0.003**	0.003**
FogFS	(0.002)	(0.001)	(0.002)	(0.001)	(0.002)	(0.001)
FC	−0.013	−0.013	−0.011	−0.011	−0.013	−0.013
FC	(0.018)	(0.016)	(0.018)	(0.016)	(0.018)	(0.016)
Intercept	0.154	−0.271	0.114	−0.308	0.214	−0.222
Intercept	(0.267)	(0.238)	(0.264)	(0.235)	(0.270)	(0.240)
Industry Fixed Effects	YES	YES	YES	YES	YES	YES
Year Fixed Effects	YES	YES	YES	YES	YES	YES
Audit Firm Fixed Effects	YES	YES	YES	YES	YES	YES
Observations	1,097	1,097	1,097	1,097	1,097	1,097
R-squared	0.401	0.350	0.407	0.356	0.401	0.350
Adj R-squared	0.266	0.204	0.274	0.211	0.267	0.204
F value	2.975***	2.399***	3.059***	2.461***	2.984***	2.400***

Variable	(1) IE5	(2) IE10	(3) IE5	(4) IE10	(5) IE5	(6) IE10
Fog	−0.009***	−0.008***
Fog	(0.002)	(0.002)
FK			−0.006***	−0.005***
FK			(0.001)	(0.001)
SMOG					−0.013***	−0.011***
SMOG					(0.003)	(0.003)
B_SIZE	−0.100***	−0.081***	−0.103***	−0.084***	−0.103***	−0.083***
B_SIZE	(0.032)	(0.028)	(0.032)	(0.028)	(0.032)	(0.028)
B_IND	0.113***	0.105***	0.111***	0.103***	0.112***	0.105***
B_IND	(0.031)	(0.028)	(0.031)	(0.028)	(0.031)	(0.028)
InstOwn	0.052**	0.026	0.043*	0.018	0.050**	0.024
InstOwn	(0.023)	(0.021)	(0.023)	(0.020)	(0.023)	(0.021)
AudType	−0.074	−0.050	−0.076	−0.052	−0.073	−0.049
AudType	(0.089)	(0.080)	(0.089)	(0.079)	(0.089)	(0.080)
LnFee	−0.001	0.009	−0.003	0.007	−0.000	0.009
LnFee	(0.011)	(0.010)	(0.011)	(0.010)	(0.011)	(0.010)
AudChange	−0.015	−0.012	−0.016	−0.013	−0.015	−0.012
AudChange	(0.013)	(0.011)	(0.013)	(0.011)	(0.013)	(0.011)
AudTenure	−0.004	−0.001	−0.004	−0.001	−0.004	−0.001
AudTenure	(0.004)	(0.003)	(0.004)	(0.003)	(0.004)	(0.003)
AudOpin	0.002	0.010	−0.004	0.005	0.001	0.009
AudOpin	(0.013)	(0.012)	(0.013)	(0.012)	(0.013)	(0.012)
ARL	0.001*	0.000	0.000	0.000	0.001*	0.000
ARL	(0.000)	(0.000)	(0.000)	(0.000)	(0.000)	(0.000)
Accruals	−0.071	−0.061	−0.059	−0.050	−0.072	−0.061
Accruals	(0.050)	(0.044)	(0.049)	(0.044)	(0.050)	(0.044)
Size	0.021	0.023*	0.018	0.020	0.020	0.021*
Size	(0.014)	(0.013)	(0.014)	(0.013)	(0.014)	(0.013)
AssetGrowth	0.045***	0.029**	0.052***	0.034**	0.045***	0.029*
AssetGrowth	(0.016)	(0.015)	(0.016)	(0.015)	(0.016)	(0.015)
InvRec	0.103***	0.063*	0.098**	0.058*	0.101***	0.061*
InvRec	(0.039)	(0.035)	(0.039)	(0.034)	(0.039)	(0.035)
∆Lev	−0.217***	−0.130***	−0.213***	−0.126***	−0.217***	−0.130***
∆Lev	(0.039)	(0.035)	(0.039)	(0.034)	(0.039)	(0.035)
ROA	−0.210*	−0.148	−0.227**	−0.163*	−0.203*	−0.143
ROA	(0.109)	(0.097)	(0.108)	(0.096)	(0.109)	(0.097)
Loss	0.009	0.004	0.008	0.003	0.011	0.005
Loss	(0.020)	(0.018)	(0.020)	(0.018)	(0.020)	(0.018)
Segment	0.012	0.002	0.012	0.002	0.012	0.003
Segment	(0.011)	(0.010)	(0.011)	(0.010)	(0.011)	(0.010)
ALTZ	0.020	0.015	0.021	0.016	0.020	0.015
ALTZ	(0.016)	(0.014)	(0.016)	(0.014)	(0.016)	(0.014)
LnAge	−0.010	−0.007	−0.005	−0.002	−0.010	−0.006
LnAge	(0.016)	(0.014)	(0.016)	(0.014)	(0.016)	(0.014)
Aturn	−0.034*	−0.035**	−0.030*	−0.032**	−0.033*	−0.034**
Aturn	(0.017)	(0.016)	(0.017)	(0.015)	(0.017)	(0.016)
FogFS	0.003**	0.003**	0.003**	0.003*	0.003**	0.003**
FogFS	(0.002)	(0.001)	(0.002)	(0.001)	(0.002)	(0.001)
FC	−0.013	−0.013	−0.011	−0.011	−0.013	−0.013
FC	(0.018)	(0.016)	(0.018)	(0.016)	(0.018)	(0.016)
Intercept	0.154	−0.271	0.114	−0.308	0.214	−0.222
Intercept	(0.267)	(0.238)	(0.264)	(0.235)	(0.270)	(0.240)
Industry Fixed Effects	YES	YES	YES	YES	YES	YES
Year Fixed Effects	YES	YES	YES	YES	YES	YES
Audit Firm Fixed Effects	YES	YES	YES	YES	YES	YES
Observations	1,097	1,097	1,097	1,097	1,097	1,097
R-squared	0.401	0.350	0.407	0.356	0.401	0.350
Adj R-squared	0.266	0.204	0.274	0.211	0.267	0.204
F value	2.975***	2.399***	3.059***	2.461***	2.984***	2.400***

Note(s): Standard errors are in parentheses. p-values: ***p < 0.01, **p < 0.05, *p < 0.1. Each continuous independent variable is winsorized at the 1st and 99th percentile to reduce the influence of outliers. Variable definitions are provided in the Appendix

Source(s): Authors’ own work

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