Table 5. Robustness check Panel A:...

Table 5.

Robustness check


Panel A: Alternative measures of Confucian culture
		(1)	(2)
		Big10	Big10
Conf_academy		0.085*** (12.963)
Conf_chair			0.039*** (5.177)
Controls		Y	Y
Industry		Y	Y
Year		Y	Y
N		31,356	26,459
Pseudo R²		0.104	0.120
Panel B: Alternative measure of auditor quality
	(1)	(2)	(3)
	Violate	Violate	Violate
ln_con_1	−0.098*** (−3.352)
ln_con_2		−0.130*** (−4.843)
ln_con_3			−0.103*** (−3.786)
Controls	Y	Y	Y
Industry	Y	Y	Y
Year	Y	Y	Y
N	32,974	32,974	32,974
Pseudo R²	0.179	0.181	0.180
Panel C: Alternative sample by excluding firms from ethnic minority regions
	(1)	(2)	(3)
	Big10	Big10	Big10
ln_con_1	0.060*** (5.777)
ln_con_2		0.081*** (7.555)
ln_con_3			0.025** (2.217)
Controls	Y	Y	Y
Industry	Y	Y	Y
Year	Y	Y	Y
N	32,984	32,984	32,984
Pseudo R²	0.102	0.103	0.101
Panel D: Alternative Sample by Excluding Firms from Regions with Strong Influences from both Confucian Culture and the Big 10 Auditors
	Non-Big 10 Auditor and Low Confucianism
	(1)	(2)	(3)
	Big10	Big10	Big10
ln_con_1	0.017(1.312)
ln_con_2		0.040*** (3.434)
ln_con_3			0.028** (2.490)
Controls	Y	Y	Y
Industry	Y	Y	Y
Year	Y	Y	Y
N	16,953	16,048	16,579
Pseudo R²	0.130	0.128	0.129


Panel A: Alternative measures of Confucian culture
		(1)	(2)
		Big10	Big10
Conf_academy		0.085*** (12.963)
Conf_chair			0.039*** (5.177)
Controls		Y	Y
Industry		Y	Y
Year		Y	Y
N		31,356	26,459
Pseudo R²		0.104	0.120
Panel B: Alternative measure of auditor quality
	(1)	(2)	(3)
	Violate	Violate	Violate
ln_con_1	−0.098*** (−3.352)
ln_con_2		−0.130*** (−4.843)
ln_con_3			−0.103*** (−3.786)
Controls	Y	Y	Y
Industry	Y	Y	Y
Year	Y	Y	Y
N	32,974	32,974	32,974
Pseudo R²	0.179	0.181	0.180
Panel C: Alternative sample by excluding firms from ethnic minority regions
	(1)	(2)	(3)
	Big10	Big10	Big10
ln_con_1	0.060*** (5.777)
ln_con_2		0.081*** (7.555)
ln_con_3			0.025** (2.217)
Controls	Y	Y	Y
Industry	Y	Y	Y
Year	Y	Y	Y
N	32,984	32,984	32,984
Pseudo R²	0.102	0.103	0.101
Panel D: Alternative Sample by Excluding Firms from Regions with Strong Influences from both Confucian Culture and the Big 10 Auditors
	Non-Big 10 Auditor and Low Confucianism
	(1)	(2)	(3)
	Big10	Big10	Big10
ln_con_1	0.017(1.312)
ln_con_2		0.040*** (3.434)
ln_con_3			0.028** (2.490)
Controls	Y	Y	Y
Industry	Y	Y	Y
Year	Y	Y	Y
N	16,953	16,048	16,579
Pseudo R²	0.130	0.128	0.129

Note(s): This table presents the results of robustness tests. Panel A shows results with alternative measures of Confucian culture. Panel B uses an alternative measure of high-quality auditors. Panel C displays results after excluding firms from ethnic minority regions. Panel D uses an alternative sample that excludes firms from regions with strong influences from both Confucian culture and the Big 10 auditors. All variables are defined in Appendix. Continuous variables are winsorized at the top and bottom 1%. Year and industry fixed effects are included. We report two-sided t-statistics computed using standard errors clustered by firm. *, ** and ***indicate significance at the 10, 5 and 1% levels

Source(s): Authors’ own work

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