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Future Business Journal

Table 4 Ownership structure and earnings management: Threshold estimation results

From: Does ownership structure reduce earnings manipulation practice of Egyptian listed firms? Evidence from a dynamic panel threshold model

xit\qit

MAG

FAM

GOV

INST

 

Lower regime (φˆ1)

DKAZt − 1

 − 0.0655

 − 0.0226

0.164***

0.218***

(0.0824)

(0.0452)

(0.0620)

(0.0611)

OWNS

0.0134***

0.00318

0.00936***

0.00114

(0.00322)

(0.00390)

(0.00185)

(0.00139)

ROA

0.00962

 − 0.193

0.0691

0.780**

(0.303)

(0.221)

(0.271)

(0.316)

ROE

 − 0.0672

0.0550

 − 0.198*

 − 0.388**

(0.169)

(0.100)

(0.118)

(0.153)

LIQ

 − 0.00101

0.00182

0.00402

 − 0.0232***

(0.00478)

(0.00327)

(0.00556)

(0.00446)

LEV

 − 0.0544

 − 0.0817**

0.0685

0.165***

(0.0700)

(0.0387)

(0.0465)

(0.0362)

GEAR

0.0635**

0.0407***

0.000207

 − 0.0363***

(0.0309)

(0.00764)

(0.00691)

(0.0139)

Size

 − 0.0212

 − 0.0669***

0.0308

0.0121

(0.0238)

(0.0138)

(0.0291)

(0.0173)

TANG

0.0589

0.0129

 − 0.0125

 − 0.272***

(0.0618)

(0.0395)

(0.0726)

(0.0444)

OC

 − 0.0376

0.0677***

0.0317

0.0609**

(0.0306)

(0.0216)

(0.0292)

(0.0280)

EFLEX

0.00837

0.0838***

 − 0.192***

 − 0.0981*

(0.0471)

(0.0303)

(0.0551)

(0.0543)

xit\qit

MAG

FAM

GOV

INST

 

Upper regime (φˆ1)

DKAZt − 1

0.441***

0.446

 − 0.0800

 − 0.610***

(0.137)

(0.395)

(0.280)

(0.148)

OWNS

 − 0.0142***

0.216

 − 0.00816**

0.00488

(0.00488)

(0.171)

(0.00372)

(0.00358)

ROA

1.780***

0.107

 − 0.746

 − 0.651

(0.550)

(2.693)

(0.628)

(0.624)

ROE

 − 0.941***

 − 1.617

0.773***

0.231

(0.250)

(1.627)

(0.291)

(0.299)

LIQ

 − 0.0105

 − 0.196**

0.0149

0.0388***

(0.0144)

(0.0946)

(0.0218)

(0.0133)

LEV

0.345***

0.211

0.294**

 − 0.479***

(0.0946)

(0.762)

(0.136)

(0.177)

GEAR

 − 0.202***

 − 0.331*

 − 0.0549

0.114**

(0.0384)

(0.183)

(0.0456)

(0.0475)

Size

 − 0.0707*

0.295**

 − 0.271***

 − 0.0641*

(0.0415)

(0.136)

(0.0574)

(0.0362)

TANG

 − 0.290***

 − 0.116

0.0247

0.347***

(0.0733)

(0.169)

(0.101)

(0.0873)

OC

0.111***

 − 0.0590

0.203***

 − 0.103**

(0.0373)

(0.146)

(0.0451)

(0.0473)

EFLEX

0.165*

 − 0.430

 − 0.0848

0.277***

(0.0860)

(0.306)

(0.125)

(0.0895)

Constant

 − 0.0593

 − 5.734

0.293

0.274*

(0.182)

(4.264)

(0.284)

(0.160)

Threshold

18.67**

21.19***

47.65***

44.09***

(9.222)

(0.872)

(10.84)

(10.64)

Linearity test (p − value)

0.000

0.000

0.000

0.000

Observations

780

780

780

780

Number of firms

78

78

78

78

  1. This table presents the results of Dynamic Panel Threshold Approach (Eq. 1) derived by Seo & Shin [57]. The dependent variable is ownership structure measured by Kasznik [36] model (DKAZ). Sample period: 2008–2017. Linearity test is the bootstrap test of linearity where the null hypothesis is the no threshold effects.
  2. Standard errors are reported in parentheses and *** denotes significance at 1%
  3. ***, **, and * represent significance level at the 1%, 5% and 10% levels, respectively
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