Table 5 Regression results using PCSE...

Table 5

Regression results using PCSE model and lag model

Variables	Model 1(a)		Model 1(b)		Model 2
Variables	Coef.	Std. err.	Coef.	Std. err.	Coef.	Std. err.
ACSIZE	−7.22^***	0.65	−1.95^***	2.72	−8.83^**	2.08
ACIND	−3.13	2.31	−5.38	1.71	−7.50	4.63
ACGD	−9.75^***	1.35	−9.34^***	2.34	−9.54^**	5.22
ACD	0.37	0.45	−1.21	1.49	8.28	7.13
ACE	−6.05^***	2.26	−9.04^***	3.26	−9.35^**	2.16
BIG4	−7.66^**	8.17	−8.51	15.73	1.73	5.17
ART	8.45^***	2.15	9.09^***	4.31	3.65^***	9.05
FSIZE	−2.90^***	0.27	−2.87^***	0.38	−7.56^**	8.28
LEV	6.28^***	1.44	7.24^***	2.74	4.34	9.25
ROA	−9.20^***	6.78	−9.49^***	19.44	−9.27^**	5.96
Constant	−196.48^***	20.98	−165.54^***	10.50	174.50	23.70
Year dummy	Yes		Yes		Yes
Observations	240		240		190
R-squared	0.30		0.37		0.32
Wald χ²	30.18^***		16.31^***		2.78^***

Variables	Model 1(a)		Model 1(b)		Model 2
Variables	Coef.	Std. err.	Coef.	Std. err.	Coef.	Std. err.
ACSIZE	−7.22^***	0.65	−1.95^***	2.72	−8.83^**	2.08
ACIND	−3.13	2.31	−5.38	1.71	−7.50	4.63
ACGD	−9.75^***	1.35	−9.34^***	2.34	−9.54^**	5.22
ACD	0.37	0.45	−1.21	1.49	8.28	7.13
ACE	−6.05^***	2.26	−9.04^***	3.26	−9.35^**	2.16
BIG4	−7.66^**	8.17	−8.51	15.73	1.73	5.17
ART	8.45^***	2.15	9.09^***	4.31	3.65^***	9.05
FSIZE	−2.90^***	0.27	−2.87^***	0.38	−7.56^**	8.28
LEV	6.28^***	1.44	7.24^***	2.74	4.34	9.25
ROA	−9.20^***	6.78	−9.49^***	19.44	−9.27^**	5.96
Constant	−196.48^***	20.98	−165.54^***	10.50	174.50	23.70
Year dummy	Yes		Yes		Yes
Observations	240		240		190
R-squared	0.30		0.37		0.32
Wald χ²	30.18^***		16.31^***		2.78^***

Note(s): This table represents the result of the relationship between audit committee characteristics and audit report lag using Equation (1) and(2). Model 1(a) is estimated by using PCSE model with independent autocorrelation structure, whereas the Model 1(b) is estimated by using PCSE model with first-order autocorrelation structure. Model 2 is estimated by using lag model where the proxies of audit committee characteristics are lagged by one year. Standard errors are in parentheses. ^***, ^** and ^* indicate level of significance at 1, 5 and 10%, respectively. For definition of variables, refer to Table 2

Source(s): Authors’ own creation

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