Table 8 Additional analysis result Panel...

Table 8

Additional analysis result

Panel A
Model 1 (dependent: CAR3)
	Income increasing			Income decreasing
Variable	Coefficient	z-value	P > \|z\|	Coefficient	z-value	P > \|z\|
CAR3_{lag 1}	0.0382637	0.38	0.702	0.0533614	0.54	0.587
ES	0.2425511***	4.42	0.000	0.2095136***	4.07	0.000
ABSEM	0.0027346	0.35	0.725	0.0005609	0.07	0.942
sqESEMIncreasingEM	1.331705	0.80	0.424
sqESEMDecreasingEM				0.9154947***	2.47	0.014
ROA	−0.3807645***	−3.35	0.001	−0.3468836***	−3.20	0.001
WC	−0.2595133***	−3.54	0.000	−0.2410026***	−3.42	0.001
Growth2	0.0320514***	2.75	0.006	0.0304254***	2.70	0.007
sqrtCR	0.0845969**	2.49	0.013	0.0639201*	1.93	0.054
Y2020	0.0064162	0.57	0.571	0.0084994	0.77	0.439
Y2021	−0.0084738	−0.83	0.408	−0.0048723	−0.49	0.622
Y2022	0.0068954	0.77	0.441	0.0109491	1.24	0.215
Sargan test	χ² = 6.139928, p-value: 0.6316			χ² = 5.163263, p-value: 0.7400
AR(1) test (p-value)	z-value: −2.0275, p-value: 0.0426			z-value: −2.0217, p-value: 0.0432
AR(2) test (p-value)	z-value: −1.2893, p-value: 0.1973			z-value: −1.5248, p-value: 0.1278

Panel A
Model 1 (dependent: CAR3)
	Income increasing			Income decreasing
Variable	Coefficient	z-value	P > \|z\|	Coefficient	z-value	P > \|z\|
CAR3_{lag 1}	0.0382637	0.38	0.702	0.0533614	0.54	0.587
ES	0.2425511***	4.42	0.000	0.2095136***	4.07	0.000
ABSEM	0.0027346	0.35	0.725	0.0005609	0.07	0.942
sqESEMIncreasingEM	1.331705	0.80	0.424
sqESEMDecreasingEM				0.9154947***	2.47	0.014
ROA	−0.3807645***	−3.35	0.001	−0.3468836***	−3.20	0.001
WC	−0.2595133***	−3.54	0.000	−0.2410026***	−3.42	0.001
Growth2	0.0320514***	2.75	0.006	0.0304254***	2.70	0.007
sqrtCR	0.0845969**	2.49	0.013	0.0639201*	1.93	0.054
Y2020	0.0064162	0.57	0.571	0.0084994	0.77	0.439
Y2021	−0.0084738	−0.83	0.408	−0.0048723	−0.49	0.622
Y2022	0.0068954	0.77	0.441	0.0109491	1.24	0.215
Sargan test	χ² = 6.139928, p-value: 0.6316			χ² = 5.163263, p-value: 0.7400
AR(1) test (p-value)	z-value: −2.0275, p-value: 0.0426			z-value: −2.0217, p-value: 0.0432
AR(2) test (p-value)	z-value: −1.2893, p-value: 0.1973			z-value: −1.5248, p-value: 0.1278

Panel B
Model 1 (dependent: CAR3)
	Income increasing			Income decreasing
Variable	Coefficient	z-value	P > \|z\|	Coefficient	z-value	P > \|z\|
CAR3_{lag 1}	0.0502997	0.49	0.623	0.065164	0.65	0.514
ES	0.2455464***	4.43	0.000	0.2494559***	4.67	0.000
ABSEM	0.0020182	0.26	0.798	−0.0005629	−0.07	0.942
ESG	0.0005448	0.71	0.475	0.0007107	0.95	0.340
sqESEMESG*IncreasingEM	0.0205326	0.80	0.424
sqESEMESG*DecreasingEM				0.0186641***	2.57	0.010
ROA	−0.3928893***	−3.40	0.001	−0.393655***	−3.52	0.000
WC	−0.247503***	−3.27	0.001	−0.2264892***	−3.12	0.002
Growth2	0.0282583**	2.23	0.026	0.0259314**	2.11	0.034
sqrtCR	0.0795922**	2.26	0.024	0.0555006	1.61	0.107
Y2020	0.012743	0.89	0.376	0.0172954	1.24	0.216
Y2021	−0.0041454	−0.35	0.730	0.0004401	0.04	0.970
Y2022	0.0087707	0.93	0.352	0.0138156	1.48	0.138
Sargan test	χ² = 6.131368, p-value: 0.6325			χ² = 5.147233, p-value: 0.7417
AR(1) test (p-value)	z-value: −2.0385, p-value: 0.0415			z-value: −1.9224, p-value: 0.0546
AR(2) test (p-value)	z-value: −1.4022, p-value: 0.1609			z-value: −1.6522, p-value: 0.0985

Panel B
Model 1 (dependent: CAR3)
	Income increasing			Income decreasing
Variable	Coefficient	z-value	P > \|z\|	Coefficient	z-value	P > \|z\|
CAR3_{lag 1}	0.0502997	0.49	0.623	0.065164	0.65	0.514
ES	0.2455464***	4.43	0.000	0.2494559***	4.67	0.000
ABSEM	0.0020182	0.26	0.798	−0.0005629	−0.07	0.942
ESG	0.0005448	0.71	0.475	0.0007107	0.95	0.340
sqESEMESG*IncreasingEM	0.0205326	0.80	0.424
sqESEMESG*DecreasingEM				0.0186641***	2.57	0.010
ROA	−0.3928893***	−3.40	0.001	−0.393655***	−3.52	0.000
WC	−0.247503***	−3.27	0.001	−0.2264892***	−3.12	0.002
Growth2	0.0282583**	2.23	0.026	0.0259314**	2.11	0.034
sqrtCR	0.0795922**	2.26	0.024	0.0555006	1.61	0.107
Y2020	0.012743	0.89	0.376	0.0172954	1.24	0.216
Y2021	−0.0041454	−0.35	0.730	0.0004401	0.04	0.970
Y2022	0.0087707	0.93	0.352	0.0138156	1.48	0.138
Sargan test	χ² = 6.131368, p-value: 0.6325			χ² = 5.147233, p-value: 0.7417
AR(1) test (p-value)	z-value: −2.0385, p-value: 0.0415			z-value: −1.9224, p-value: 0.0546
AR(2) test (p-value)	z-value: −1.4022, p-value: 0.1609			z-value: −1.6522, p-value: 0.0985

Panel C
Model 1 (dependent: CAR5)
	Income increasing			Income decreasing
Variable	Coefficient	z-value	P > \|z\|	Coefficient	z-value	P > \|z\|
CAR3_{lag 1}	0.0521108	0.61	0.539	0.0471877	0.56	0.578
ES	0.4383815***	3.78	0.000	0.3933359***	3.55	0.000
ABSEM	0.0018116	0.12	0.905	0.0000165	0.00	0.999
sqESEMIncreasingEM	5.983552*	1.77	0.077
sqESEMDecreasingEM				1.496415*	1.91	0.056
ROA	−0.5824574**	−2.47	0.013	−0.4718745**	−2.06	0.039
WC	−0.3449653**	−2.25	0.024	−0.2767308*	−1.84	0.066
Growth2	0.0274403	1.17	0.242	0.0210638	0.90	0.366
sqrtCR	0.1310027**	2.05	0.040	0.0804259	1.25	0.210
Y2020	0.0180431	0.71	0.475	0.0253758	1.01	0.310
Y2021	0.0012636	0.06	0.950	0.01101	0.55	0.581
Y2022	0.0026774	0.15	0.883	0.0087607	0.48	0.632
Sargan test	χ² = 6.333632, p-value: 0.6099			χ² = 5.97269, p value: 0.6503
AR(1) test (p-value)	z-value: −2.0426, p-value: 0.0411			z-value: −2.3456, p-value: 0.0190
AR(2) test (p-value)	z-value: −0.86016, p-value: 0.3897			z-value: −1.0957, p-value: 0.2732

Panel C
Model 1 (dependent: CAR5)
	Income increasing			Income decreasing
Variable	Coefficient	z-value	P > \|z\|	Coefficient	z-value	P > \|z\|
CAR3_{lag 1}	0.0521108	0.61	0.539	0.0471877	0.56	0.578
ES	0.4383815***	3.78	0.000	0.3933359***	3.55	0.000
ABSEM	0.0018116	0.12	0.905	0.0000165	0.00	0.999
sqESEMIncreasingEM	5.983552*	1.77	0.077
sqESEMDecreasingEM				1.496415*	1.91	0.056
ROA	−0.5824574**	−2.47	0.013	−0.4718745**	−2.06	0.039
WC	−0.3449653**	−2.25	0.024	−0.2767308*	−1.84	0.066
Growth2	0.0274403	1.17	0.242	0.0210638	0.90	0.366
sqrtCR	0.1310027**	2.05	0.040	0.0804259	1.25	0.210
Y2020	0.0180431	0.71	0.475	0.0253758	1.01	0.310
Y2021	0.0012636	0.06	0.950	0.01101	0.55	0.581
Y2022	0.0026774	0.15	0.883	0.0087607	0.48	0.632
Sargan test	χ² = 6.333632, p-value: 0.6099			χ² = 5.97269, p value: 0.6503
AR(1) test (p-value)	z-value: −2.0426, p-value: 0.0411			z-value: −2.3456, p-value: 0.0190
AR(2) test (p-value)	z-value: −0.86016, p-value: 0.3897			z-value: −1.0957, p-value: 0.2732

Panel D
Model 1 (dependent: CAR5)
	Income increasing			Income decreasing
Variable	Coefficient	z-value	P > \|z\|	Coefficient	z-value	P > \|z\|
CAR3_{lag 1}	0.0610095	0.70	0.484	0.0539636	0.62	0.533
ES	0.4484229***	3.79	0.000	0.4580644***	4.05	0.000
ABSEM	0.0007486	0.05	0.962	−0.0018282	−0.12	0.907
ESG	0.0009081	0.60	0.546	0.0009896	0.66	0.507
sqESEMESG*IncreasingEM	0.091744	1.75	0.079
sqESEMESG*DecreasingEM				0.032647**	2.12	0.034
ROA	−0.6126803**	−2.52	0.012	−0.5457899**	−2.32	0.020
WC	−0.3298953**	−2.10	0.035	−0.2600035*	−1.70	0.090
Growth2	0.0215169	0.84	0.400	0.0149402	0.59	0.555
sqrtCR	0.1126367	1.59	0.112	0.0564407	0.79	0.428
Y2020	0.0284295	0.93	0.350	0.0384669	1.28	0.202
Y2021	0.0089866	0.37	0.709	0.0195129	0.82	0.411
Y2022	0.0062878	0.33	0.744	0.0140684	0.72	0.469
Sargan test	χ² = 5.878093, p-value: 0.6609			χ² = 5.36595, p-value: 0.7178
AR(1) test (p-value)	z-value: −2.0689, p-value: 0.0386			z-value: −2.3237, p-value: 0.0201
AR(2) test (p-value)	z-value: −0.8973, p-value: 0.3695			z-value: −1.1583, p-value: 0.2467

Panel D
Model 1 (dependent: CAR5)
	Income increasing			Income decreasing
Variable	Coefficient	z-value	P > \|z\|	Coefficient	z-value	P > \|z\|
CAR3_{lag 1}	0.0610095	0.70	0.484	0.0539636	0.62	0.533
ES	0.4484229***	3.79	0.000	0.4580644***	4.05	0.000
ABSEM	0.0007486	0.05	0.962	−0.0018282	−0.12	0.907
ESG	0.0009081	0.60	0.546	0.0009896	0.66	0.507
sqESEMESG*IncreasingEM	0.091744	1.75	0.079
sqESEMESG*DecreasingEM				0.032647**	2.12	0.034
ROA	−0.6126803**	−2.52	0.012	−0.5457899**	−2.32	0.020
WC	−0.3298953**	−2.10	0.035	−0.2600035*	−1.70	0.090
Growth2	0.0215169	0.84	0.400	0.0149402	0.59	0.555
sqrtCR	0.1126367	1.59	0.112	0.0564407	0.79	0.428
Y2020	0.0284295	0.93	0.350	0.0384669	1.28	0.202
Y2021	0.0089866	0.37	0.709	0.0195129	0.82	0.411
Y2022	0.0062878	0.33	0.744	0.0140684	0.72	0.469
Sargan test	χ² = 5.878093, p-value: 0.6609			χ² = 5.36595, p-value: 0.7178
AR(1) test (p-value)	z-value: −2.0689, p-value: 0.0386			z-value: −2.3237, p-value: 0.0201
AR(2) test (p-value)	z-value: −0.8973, p-value: 0.3695			z-value: −1.1583, p-value: 0.2467

Note(s): IncreasingEM is dummy variable, given label 1 for positif value of earnings management which means income-increasing earnings management, 0 other wise. DecreasingEM is dummy variable, given label 1 for negatif value of earnings management which mean income-decreasing earnings management, 0 otherwise

Source(s): Authors’ own work

[ViewLarge]

Sharing Unavailable