The complementary role of Confucian culture and high-quality auditors in enhancing firm value
| Confucian culture (ln_con_1) | Confucian culture (ln_con_2) | Confucian culture (ln_con_3) | ||||
|---|---|---|---|---|---|---|
| High | Low | High | Low | High | Low | |
| (1)TobinQ | (2)TobinQ | (3)TobinQ | (4)TobinQ | (5)TobinQ | (6)TobinQ | |
| Big10 | 0.043** (2.496) | 0.006 (0.363) | 0.048*** (2.769) | 0.004 (0.229) | 0.046*** (2.769) | −0.000 (−0.023) |
| SIZE | −0.489*** (−57.358) | −0.504*** (−58.769) | −0.502*** (−57.867) | −0.489*** (−58.049) | −0.508*** (−59.734) | −0.484*** (−56.434) |
| LEV | 0.593*** (9.807) | 0.786*** (13.504) | 0.612*** (10.063) | 0.765*** (13.219) | 0.587*** (10.001) | 0.774*** (12.914) |
| ROA | 2.674*** (18.841) | 2.844*** (19.916) | 2.894*** (19.738) | 2.755*** (19.881) | 2.714*** (19.126) | 2.872*** (20.124) |
| ISSUE | 0.169*** (10.117) | 0.175*** (10.319) | 0.152*** (9.023) | 0.176*** (10.488) | 0.151*** (9.195) | 0.184*** (10.611) |
| ATURN | −0.023 (−1.055) | 0.009 (0.418) | −0.027 (−1.296) | −0.011 (−0.479) | −0.007 (−0.343) | −0.031 (−1.372) |
| CURR | 0.020*** (4.986) | 0.027*** (6.409) | 0.019*** (4.364) | 0.028*** (7.017) | 0.020*** (4.692) | 0.026*** (6.492) |
| GROWTH | 0.032* (1.793) | 0.005 (0.267) | 0.033* (1.853) | 0.009 (0.510) | 0.028* (1.678) | 0.010 (0.521) |
| FOREIGN | 0.413*** (11.624) | 0.527*** (13.920) | 0.448*** (12.196) | 0.496*** (13.492) | 0.407*** (11.016) | 0.522*** (14.195) |
| SOE | 0.005 (0.242) | −0.051** (−2.545) | −0.015 (−0.688) | −0.040* (−1.933) | −0.042** (−2.053) | −0.000 (−0.015) |
| GDP | −0.114*** (−6.153) | 0.007 (0.634) | −0.120*** (−6.686) | 0.015 (1.365) | −0.131*** (−7.793) | 0.028** (2.448) |
| RELIGION | −0.021*** (−3.868) | −0.024*** (−3.617) | −0.019*** (−3.115) | −0.028*** (−5.087) | −0.015** (−2.200) | −0.035*** (−6.445) |
| CG | −0.274*** (−16.694) | −0.268*** (−15.777) | −0.303*** (−18.200) | −0.252*** (−15.099) | −0.297*** (−18.023) | −0.250*** (−14.827) |
| _cons | 12.193*** (49.345) | 11.603*** (56.899) | 12.366*** (49.547) | 11.286*** (55.881) | 12.682*** (52.171) | 11.074*** (53.923) |
| INDUSTRY | Y | Y | Y | Y | Y | Y |
| YEAR | Y | Y | Y | Y | Y | Y |
| N | 17,212 | 15,772 | 15,985 | 16,999 | 16,990 | 15,994 |
| Adj_R2 | 0.334 | 0.332 | 0.338 | 0.331 | 0.337 | 0.332 |
| Confucian culture ( | Confucian culture ( | Confucian culture | ||||
|---|---|---|---|---|---|---|
| High | Low | High | Low | High | Low | |
| (1) | (2) | (3) | (4) | (5) | (6) | |
| 0.043** (2.496) | 0.006 (0.363) | 0.048*** (2.769) | 0.004 (0.229) | 0.046*** (2.769) | −0.000 (−0.023) | |
| −0.489*** (−57.358) | −0.504*** (−58.769) | −0.502*** (−57.867) | −0.489*** (−58.049) | −0.508*** (−59.734) | −0.484*** (−56.434) | |
| 0.593*** (9.807) | 0.786*** (13.504) | 0.612*** (10.063) | 0.765*** (13.219) | 0.587*** (10.001) | 0.774*** (12.914) | |
| 2.674*** (18.841) | 2.844*** (19.916) | 2.894*** (19.738) | 2.755*** (19.881) | 2.714*** (19.126) | 2.872*** (20.124) | |
| 0.169*** (10.117) | 0.175*** (10.319) | 0.152*** (9.023) | 0.176*** (10.488) | 0.151*** (9.195) | 0.184*** (10.611) | |
| −0.023 (−1.055) | 0.009 (0.418) | −0.027 (−1.296) | −0.011 (−0.479) | −0.007 (−0.343) | −0.031 (−1.372) | |
| 0.020*** (4.986) | 0.027*** (6.409) | 0.019*** (4.364) | 0.028*** (7.017) | 0.020*** (4.692) | 0.026*** (6.492) | |
| 0.032* (1.793) | 0.005 (0.267) | 0.033* (1.853) | 0.009 (0.510) | 0.028* (1.678) | 0.010 (0.521) | |
| 0.413*** (11.624) | 0.527*** (13.920) | 0.448*** (12.196) | 0.496*** (13.492) | 0.407*** (11.016) | 0.522*** (14.195) | |
| 0.005 (0.242) | −0.051** (−2.545) | −0.015 (−0.688) | −0.040* (−1.933) | −0.042** (−2.053) | −0.000 (−0.015) | |
| −0.114*** (−6.153) | 0.007 (0.634) | −0.120*** (−6.686) | 0.015 (1.365) | −0.131*** (−7.793) | 0.028** (2.448) | |
| −0.021*** (−3.868) | −0.024*** (−3.617) | −0.019*** (−3.115) | −0.028*** (−5.087) | −0.015** (−2.200) | −0.035*** (−6.445) | |
| −0.274*** (−16.694) | −0.268*** (−15.777) | −0.303*** (−18.200) | −0.252*** (−15.099) | −0.297*** (−18.023) | −0.250*** (−14.827) | |
| 12.193*** (49.345) | 11.603*** (56.899) | 12.366*** (49.547) | 11.286*** (55.881) | 12.682*** (52.171) | 11.074*** (53.923) | |
| Y | Y | Y | Y | Y | Y | |
| Y | Y | Y | Y | Y | Y | |
| 17,212 | 15,772 | 15,985 | 16,999 | 16,990 | 15,994 | |
| 0.334 | 0.332 | 0.338 | 0.331 | 0.337 | 0.332 | |
Note(s): TobinQ is calculated as market value scaled by book value, in which book value is calculated as total assets minus net intangible assets minus net goodwill. All other 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
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