Table 8. Additional analyses Panel A:...

Table 8.

Additional analyses


Panel A: Auditor change
	(1)	(2)	(3)	(4)	(5)	(6)
	AuditChange	AuditChange	AuditChange	AuditChange	AuditChange	AuditChange
ln_con_1	−0.037*** (−2.683)			−0.037*** (−2.693)
ln_con_2		−0.051*** (−4.002)			−0.052*** (−4.021)
ln_con_3			−0.037*** (−2.858)			−0.037*** (−2.864)
Big10				0.012(0.583)	0.013(0.664)	0.011(0.565)
Controls	Y	Y	Y	Y	Y	Y
Industry	Y	Y	Y	Y	Y	Y
Year	Y	Y	Y	Y	Y	Y
N	34,046	34,046	34,046	34,046	34,046	34,046
Adj R²	0.077	0.078	0.078	0.077	0.078	0.078
Panel B: The influence of Confucian culture on the engagement of international Big 4 auditors
	The Full Sample (DV=Big4)			In open city
	(1)	(2)	(3)	(4)	(5)	(6)
	Big4	Big4	Big4	Big4	Big4	Big4
ln_con_1	0.017(1.256)			0.218*** (10.475)
ln_con_2		0.002(0.193)			0.273*** (13.838)
ln_con_3			−0.035*** (−2.742)			0.321*** (13.774)
Controls	Y	Y	Y	Y	Y	Y
Industry	Y	Y	Y	Y	Y	Y
Year	Y	Y	Y	Y	Y	Y
N	34,046	34,046	34,046	10,543	10,543	10,543
Pseudo R²	0.195	0.195	0.195	0.110	0.115	0.115
Panel C: Big 8 domestic accounting firms in the Chinese market
		(1)		(2)		(3)
		Big8		Big8		Big8
ln_con_1		0.068*** (6.324)
ln_con_2				0.091*** (8.859)
ln_con_3						0.025** (2.396)
Controls		Y		Y		Y
Industry		Y		Y		Y
Year		Y		Y		Y
N		32,061		32,061		32,061
Pseudo R²		0.079		0.080		0.078
Panel D: How Does a Non-Big 10 Client Choose the Auditor?
	Non-Big 10 Auditor			Big 10 Auditor
	(1)	(2)	(3)	(4)	(5)	(6)
	IS	IS	IS	IS	IS	IS
ln_con_1	0.068** (2.429)			−0.038** (−2.422)
ln_con_2		0.070*** (2.639)			−0.012(−0.790)
ln_con_3			0.078*** (2.903)			−0.016(−1.052)
Controls	Y	Y	Y	Y	Y	Y
Industry	Y	Y	Y	Y	Y	Y
Year	Y	Y	Y	Y	Y	Y
N	15,402	15,402	15,402	16,501	16,501	16,501
Pseudo R²	0.161	0.161	0.161	0.060	0.060	0.060


Panel A: Auditor change
	(1)	(2)	(3)	(4)	(5)	(6)
	AuditChange	AuditChange	AuditChange	AuditChange	AuditChange	AuditChange
ln_con_1	−0.037*** (−2.683)			−0.037*** (−2.693)
ln_con_2		−0.051*** (−4.002)			−0.052*** (−4.021)
ln_con_3			−0.037*** (−2.858)			−0.037*** (−2.864)
Big10				0.012(0.583)	0.013(0.664)	0.011(0.565)
Controls	Y	Y	Y	Y	Y	Y
Industry	Y	Y	Y	Y	Y	Y
Year	Y	Y	Y	Y	Y	Y
N	34,046	34,046	34,046	34,046	34,046	34,046
Adj R²	0.077	0.078	0.078	0.077	0.078	0.078
Panel B: The influence of Confucian culture on the engagement of international Big 4 auditors
	The Full Sample (DV=Big4)			In open city
	(1)	(2)	(3)	(4)	(5)	(6)
	Big4	Big4	Big4	Big4	Big4	Big4
ln_con_1	0.017(1.256)			0.218*** (10.475)
ln_con_2		0.002(0.193)			0.273*** (13.838)
ln_con_3			−0.035*** (−2.742)			0.321*** (13.774)
Controls	Y	Y	Y	Y	Y	Y
Industry	Y	Y	Y	Y	Y	Y
Year	Y	Y	Y	Y	Y	Y
N	34,046	34,046	34,046	10,543	10,543	10,543
Pseudo R²	0.195	0.195	0.195	0.110	0.115	0.115
Panel C: Big 8 domestic accounting firms in the Chinese market
		(1)		(2)		(3)
		Big8		Big8		Big8
ln_con_1		0.068*** (6.324)
ln_con_2				0.091*** (8.859)
ln_con_3						0.025** (2.396)
Controls		Y		Y		Y
Industry		Y		Y		Y
Year		Y		Y		Y
N		32,061		32,061		32,061
Pseudo R²		0.079		0.080		0.078
Panel D: How Does a Non-Big 10 Client Choose the Auditor?
	Non-Big 10 Auditor			Big 10 Auditor
	(1)	(2)	(3)	(4)	(5)	(6)
	IS	IS	IS	IS	IS	IS
ln_con_1	0.068** (2.429)			−0.038** (−2.422)
ln_con_2		0.070*** (2.639)			−0.012(−0.790)
ln_con_3			0.078*** (2.903)			−0.016(−1.052)
Controls	Y	Y	Y	Y	Y	Y
Industry	Y	Y	Y	Y	Y	Y
Year	Y	Y	Y	Y	Y	Y
N	15,402	15,402	15,402	16,501	16,501	16,501
Pseudo R²	0.161	0.161	0.161	0.060	0.060	0.060

Note(s): All variables are defined in Appendix. All 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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