Table 7 The impact of financial crisis on earnings management
From: Tone of language, financial disclosure, and earnings management: a textual analysis of form 20-F
Variables | (1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) |
|---|---|---|---|---|---|---|---|---|---|
Panel A: before financial crisis 2002–2007 | |||||||||
Positive | 10.10** | ||||||||
(2.03) | |||||||||
Negative | − 0.426 | ||||||||
(− 0.23) | |||||||||
Uncertainty | 1.280 | ||||||||
(0.56) | |||||||||
Litigious | − 0.682 | ||||||||
(− 1.11) | |||||||||
Strongml | 4.046 | ||||||||
(0.64) | |||||||||
Moderml | − 8.134 | ||||||||
(− 0.81) | |||||||||
Weakml | 0.144 | ||||||||
(0.04) | |||||||||
Irrverb | − 5.993* | ||||||||
(− 1.94) | |||||||||
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 | 86 | 86 | 86 | 86 | 86 | 86 | 86 | 86 | 86 |
Adj R2 | 0.357 | 0.387 | 0.347 | 0.350 | 0.359 | 0.351 | 0.353 | 0.347 | 0.384 |
Panel B: after financial crisis 2008–2014 | |||||||||
Positive | 6.991*** | ||||||||
(3.61) | |||||||||
Negative | 1.270 | ||||||||
(1.46) | |||||||||
Uncertainty | 4.324*** | ||||||||
(3.93) | |||||||||
Litigious | 0.622 | ||||||||
(1.06) | |||||||||
Strongml | 7.533** | ||||||||
(3.36) | |||||||||
Moderml | 10.170** | ||||||||
(2.19) | |||||||||
Weakml | 6.296*** | ||||||||
(3.64) | |||||||||
Irrverb | 4.603* | ||||||||
(1.95) | |||||||||
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 | 363 | 363 | 363 | 363 | 363 | 363 | 363 | 363 | 363 |
Adj R2 | 0.112 | 0.142 | 0.114 | 0.148 | 0.112 | 0.122 | 0.121 | 0.143 | 0.119 |