Variables | (1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) |
---|
Dependent variable: AVDA |
Positive | | 9.097*** | | | | | | | |
| | (2.86) | | | | | | | |
Negative | | | 1.603 | | | | | | |
| | | (1.14) | | | | | | |
Uncertainty | | | | 4.392** | | | | | |
| | | | (2.44) | | | | | |
Litigious | | | | | 0.404 | | | | |
| | | | | (0.46) | | | | |
Strongml | | | | | | 6.183 | | | |
| | | | | | (1.16) | | | |
Moderml | | | | | | | 14.935** | | |
| | | | | | | (1.98) | | |
Weakml | | | | | | | | 6.320** | |
| | | | | | | | (2.25) | |
Irrverb | | | | | | | | | 3.560 |
| | | | | | | | | (0.97) |
Controls | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Firm | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Industry | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Year | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
N | 449 | 449 | 449 | 449 | 449 | 449 | 449 | 449 | 449 |
Adj R2 | 0.337 | 0.349 | 0.337 | 0.344 | 0.335 | 0.337 | 0.341 | 0.343 | 0.336 |
F- statistics | 8.49 | 8.62 | 8.26 | 8.51 | 8.21 | 8.27 | 8.40 | 8.46 | 8.25 |
- This table reports the OLS regression results using an alternative measure of earnings management (AVDA). The dependent variable is the estimates of discretionary revenues developed by Kothari et al. (2005). The sample includes 75 U.S.-listed Chinese companies during 2002–2014.The total number of observations is 449. The sample is obtained from the S&P Capital IQ and supplemented from the Wind Database. Positive, negative, uncertain, litigious, strong modal, moderate modal, weak modal, and irregular verbs are the eight categories of wordlist defined from the 2014 Master Dictionary of McDonald, and Loughran and McDonald (2011) word list. For the sake of brevity, we use Controls to represent all the control variables. All regressions include firm, industry, and year fixed effects. The t-statistics are in parentheses
- ***, **, and* denote significance at the 1%, 5%, and 10% level, respectively