Table 5 Robustness Tests (B) \({AQ}_{ijt}\): AAER
Dependent variable | \({{\text{AQ}}}_{{\text{ijt}}}\) | |||
|---|---|---|---|---|
| Â | \(\mathrm{Model }(3)\) | \((4)\) | \((3)\) | (4) |
Variable | Financially distressed audit clients | Non-financially distressed audit clients | ||
Constant | 1.185* (7.375) | 1.242* (7.201) | 0.821* (7.375) | 0.861* (7.201) |
Main variables | ||||
 \({\text{Distracte}}{{\text{d}}\_{\text{Auditors}}}_{{\text{ijt}}}\) | 0.030*** (2.445) | 0.027*** (2.132) | 0.021*** (2.445) | 0.019*** (2.132) |
 \({{\text{Skept}}}_{{\text{ijt}}}\) | – | 0.011 (0.368) | – | 0.007 (0.368) |
 \({\text{Distracte}}{{\text{d}}\_{\text{Auditors}}}_{{\text{ijt}}}*{{\text{Skept}}}_{{\text{ijt}}}\) | – | 0.041* (2.926) | – | 0.029* (2.926) |
Control variables_A | ||||
 \({{\text{BM}}}_{{\text{ijt}}}\) | 0.001 (0.030) | 0.000 (0.010) | 0.001 (0.065) | 0.000 (0.071) |
 \({{\text{Client}}\_{\text{Size}}}_{{\text{ijt}}}\) | 0.001*** (1.321) | 0.002* (1.582) | 0.002 (0.797) | 0.010** (1.775) |
 \({{\text{Loss}}}_{{\text{ijt}}}\) | −0.000 (−0.867) | −0.000 (−0.929) | −0.000 (−0.159) | −0.000 (−0.069) |
 \({{\text{Sale}}\_{\text{Growth}}}_{{\text{ijt}}}\) | 0.001 (0.905) | 0.001 (1.006) | 0.002 (0.113) | 0.001 (0.158) |
 \({{\text{PPE}}\_{\text{Growth}}}_{{\text{ijt}}}\) | −0.000 (−0.187) | −0.001 (−0.368) | −0.000 (−0.107) | −0.001 (−0.201) |
 \({{\text{Lev}}}_{{\text{ijt}}}\) | 0.002 (0.355) | 0.001 (1.053) | 0.002** (1.820) | 0.002 (1.450) |
 \({{\text{Liq}}}_{{\text{ijt}}}\) | 0.000 (1.127) | 0.000 (1.051) | 0.000 (0.533) | 0.000 (0.649) |
 \({{\text{ROA}}}_{{\text{ijt}}}\) | −0.011 (−0.557) | −0.009 (−0.453) | −0.036 (−0.992) | −0.034 (−0.997) |
 \({{\text{OCF}}}_{{\text{ijt}}}\) | 0.004 (0.161) | 0.001 (0.021) | 0.013 (0.909) | 0.007 (0.756) |
 \({{\text{M}}\&{\text{A}}}_{{\text{ijt}}}\) | 0.000 (0.327) | 0.000 (0.159) | 0.000** (0.980) | 0.000** (0.979) |
 \({{\text{Z}}\_{\text{score}}}_{{\text{ijt}}}\) | −0.000 (−0.757) | −0.000 (−0.877) | −0.000 (−0.385) | −0.000 (−0.407) |
Control variables_B | ||||
 \({{\text{Audit}}\_{\text{Size}}}_{{\text{ijt}}}\) | −0.006 (−0.951) | −0.007 (−0.987) | −0.011 (−0.955) | −0.013 (−1.205) |
 \({{\text{No}}\_{\text{Clients}}}_{{\text{ijt}}}\) | −0.000 (−0.631) | −0.000 (−0.749) | −0.001 (−0.391) | −0.000 (−0.597) |
 \({{\text{Busy}}\_{\text{Season}}}_{{\text{ijt}}}\) | 0.000 (0.986) | 0.000* (0.985) | 0.000 (0.990) | 0.000 (0.991) |
 \({{\text{Audit}}\_{\text{Tenure}}}_{{\text{ijt}}}\) | −0.000 (−0.776) | −0.000 (−1.588) | −0.000 (−0.191) | −0.000 (−0.491) |
 \({{\text{Audit}}\_{\text{Lag}}}_{{\text{ijt}}}\) | −0.027 (−0.833) | −0.029 (−0.851) | −0.001 (−0.199) | −0.000 (−0.127) |
 \({{\text{Big}}\_4}_{{\text{ijt}}}\) | −0.000 (−1.343) | −0.000 (−0.966) | −0.000 (−1.303) | −0.000 (−1.397) |
N | 742 | |||
adjusted \({{\text{R}}}^{2}\) | 0.337 | 0.541 | 0.407 | 0.401 |