Corporate governance, external financing, and earnings management: new evidence from an emerging market

Hong, Nguyen Thi Hoa; Anh, Nguyen Thai; Hoang, Nguyen Tran Viet; Minh, Do Nhat

doi:10.1186/s43093-023-00206-3

Future Business Journal

Table 9 Supplementary test’s results for Hypothesis 1, 2, 3 with AQ, IAQ, DAQ as proxy for earnings management

From: Corporate governance, external financing, and earnings management: new evidence from an emerging market

Variables	AQ (1)		IAQ (2)		DAQ (3)
Variables	Coef	p-value	Coef	p-value	Coef	p-value
Panel A: Hypothesis 1
CGS	− 0.227	0.032	− 0.011	0.781	− 0.216	0.070
DEBR	− 0.032	0.456	0.380	0.156	− 0.070	0.181
SIZE	0.052	0.190	− 0.008	0.385	0.059	0.153
ROA	− 0.114	0.016	− 0.003	0.944	− 0.111	0.076
Salesgr	− 0.002	0.215	0.002	0.004	− 0.003	0.038
BIG4	− 0.007	0.546	− 0.007	0.393	0.000	0.992
Constant	− 1.156	0.257	0.361	0.132	− 1.517	0.158
Year FE	Yes	Yes	Yes	Yes	Yes	Yes
Industry FE	Yes	Yes	Yes	Yes	Yes	Yes
N	2604		2604		2604
R-sq	0.0424		0.0112		0.0413
Pro > F	0.1027		0.0328		0.2834
Panel B: Hypothesis 2
XFIN	0.270	0.003	− 0.014	0.780	0.284	0.006
CGS	− 0.192	0.041	− 0.137	0.721	− 0.178	0.097
XFIN × CGS	− 0.572	0.013	0.107	0.428	− 0.680	0.009
Constant	0.216	0.000	0.168	0.000	0.483	0.234
Year FE	Yes	Yes	Yes	Yes	Yes	Yes
Industry FE	Yes	Yes	Yes	Yes	Yes	Yes
N	2604		2604		2604
R-sq	0.0167		0.0036		0.0103
Pro > F	0.0046		0.2035		0.0235
Panel C: Hypothesis 3
AQ	− 0.016	− 0.541
IAQ			− 0.013	0.803
DAQ					0.001	0.973
INS	− 0.008	− 0.493	− 0.003	0.801	− 0.008	0.491
MNG	0.038	0.063	0.035	0.083	0.040	0.057
EDR	0.015	0.093	0.010	0.284	0.015	0.112
BIG4	− 0.012	0.060	− 0.010	0.144	− 0.010	0.096
LEV	− 0.137	0.000	− 0.134	0.000	− 0.137	0.000
SIZE	0.007	0.077	0.005	0.235	0.006	0.143
PROF	0.073	0.003	0.077	0.004	0.074	0.003
AQ*INS	0.089	0.010
AQ*MNG	0.008	0.922
AQ*EDR	0.017	0.724
AQ*BIG4	− 0.061	0.051
IAQ*INS			0.037	0.699
IAQ*MNG			0.453	0.104
IAQ*EDR			0.077	0.546
IAQ*BIG4			0.082	0.147
DAQ*INS					0.082	0.030
DAQ*MNG					− 0.143	0.193
DAQ*EDR					− 0.023	0.627
DAQ*BIG4					− 0.084	0.010
Constant	− 0.076	0.486	− 0.013	0.907	− 0.038	0.717
Year FE	Ye	Yes	Yes	Yes	Yes	Yes
Industry FE	Yes	Yes	Yes	Yes	Yes	Yes
N	2604		2604		2604
R-squared	0.2233		0.2268		0.2288
Pro > F	0.0000		0.0000		0.0000

This table presents supplement analysis results (with accruals quality as an alternative proxy for earnings management) for the effects of corporate governance on earnings management of Eq. (9) (Panel A); the impact of corporate governance and external financing activities on earnings management in Eq. (11) (AQ_it = β₀ + β₁XFIN_it + β₂CGS_it + β₃XFIN_it*CGS_it + e_it (Panel B); the moderating role of corporate governance on the effects of earnings management on firm value of Eq. (12) (Panel C). The definitions for the variables are provided previously. *, **, and *** indicate statistical significance at 10%, 5%, and 1%, respectively

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