1 Introduction
2 Theoretical framework and literature review
2.1 Theoretical framework
2.2 Literature review
3 Method and data
3.1 Emprical model
3.2 Sample
4 Results
4.1 Descriptive statistics
Variables | Mean | Median | SD | Q1 | Q3 |
---|---|---|---|---|---|
ABS_DACC | 0.07 | 0.04 | 0.10 | 0.02 | 0.08 |
FDIR | 0.12 | 0.00 | 0.17 | 0.00 | 0.25 |
FEMEX | 0.05 | 0.00 | 0.12 | 0.00 | 0.00 |
FEMINEX | 0.07 | 0.00 | 0.13 | 0.00 | 0.00 |
MALEX | 0.44 | 0.33 | 0.31 | 0.25 | 0.67 |
ACSIZE | 3.71 | 4.00 | 0.90 | 3.00 | 4.00 |
IND | 0.79 | 0.80 | 0.11 | 0.71 | 0.88 |
BIG4 | 0.92 | 1.00 | 0.26 | 1.00 | 1.00 |
SIZE | 7.71 | 7.51 | 1.55 | 6.57 | 8.70 |
LEV | 0.50 | 0.28 | 0.92 | 0.01 | 0.63 |
OCF | 0.13 | 0.12 | 0.08 | 0.08 | 0.17 |
ROA | 0.06 | 0.06 | 0.08 | 0.03 | 0.11 |
MBV | 2.95 | 2.22 | 2.69 | 1.45 | 3.46 |
LOSS | 0.14 | 0.00 | 0.35 | 0.00 | 0.00 |
LNOA | 0.70 | 0.54 | 0.57 | 0.33 | 0.86 |
TREM | − 0.03 | − 0.01 | 0.47 | − 0.24 | 0.21 |
Variables | Firms with at least one female director (N = 2169) | Firms with no female director (N = 3229) | Test of difference between means | |||||
---|---|---|---|---|---|---|---|---|
Mean | Median | SD | Mean | Median | SD | t-statistic | P value | |
ABS_DACC | 0.06 | 0.04 | 0.10 | 0.07 | 0.04 | 0.11 | 3.4575 | 0.0005 |
MALEX | 0.36 | 0.33 | 0.25 | 0.50 | 0.33 | 0.33 | 15.7440 | 0.0000 |
ACSIZE | 4.06 | 4.00 | 0.96 | 3.47 | 3.00 | 0.78 | − 24.6728 | 0.0000 |
IND | 0.81 | 0.83 | 0.10 | 0.77 | 0.80 | 0.11 | − 12.8262 | 0.0000 |
BIG4 | 0.98 | 1.00 | 0.15 | 0.89 | 1.00 | 0.31 | − 12.0368 | 0.0000 |
SIZE | 8.16 | 8.02 | 1.61 | 7.41 | 7.23 | 1.42 | − 18.0510 | 0.0000 |
LEV | 0.63 | 0.39 | 1.05 | 0.41 | 0.21 | 0.81 | − 8.7785 | 0.0000 |
OCF | 0.13 | 0.12 | 0.08 | 0.13 | 0.12 | 0.09 | 1.5659 | 0.1174 |
ROA | 0.07 | 0.06 | 0.08 | 0.06 | 0.06 | 0.09 | − 0.9495 | 0.3424 |
MBV | 3.20 | 2.31 | 3.11 | 2.78 | 2.16 | 2.36 | − 5.6798 | 0.0000 |
LOSS | 0.13 | 0.00 | 0.33 | 0.15 | 0.00 | 0.35 | 1.8307 | 0.0672 |
LNOA | 0.67 | 0.51 | 0.58 | 0.72 | 0.57 | 0.57 | 2.8978 | 0.0038 |
TREM | − 0.02 | − 0.01 | 0.47 | − 0.03 | − 0.01 | 0.48 | − 1.0482 | 0.2946 |
Variables | Firms with at least one female director with relevant financial background (N = 1023) | Firms with at least one female inexpert and no female expert (N = 1146) | Test of difference between means | |||||
---|---|---|---|---|---|---|---|---|
Mean | Median | SD | Mean | Median | SD | t-statistic | P value | |
ABS_DACC | 0.06 | 0.03 | 0.09 | 0.07 | 0.04 | 0.11 | 2.6830 | 0.0074 |
MALEX | 0.42 | 0.50 | 0.28 | 0.32 | 0.27 | 0.22 | − 9.4480 | 0.0000 |
ACSIZE | 3.96 | 4.00 | 0.92 | 4.15 | 4.00 | 0.98 | 4.6030 | 0.0000 |
IND | 0.81 | 0.83 | 0.10 | 0.81 | 0.83 | 0.10 | 0.6167 | 0.5375 |
BIG4 | 0.98 | 1.00 | 0.12 | 0.97 | 1.00 | 0.17 | − 2.1746 | 0.0298 |
SIZE | 8.35 | 8.29 | 1.56 | 7.99 | 7.82 | 1.64 | − 5.2201 | 0.0000 |
LEV | 0.63 | 0.45 | 0.95 | 0.64 | 0.35 | 1.13 | 0.1098 | 0.9126 |
OCF | 0.13 | 0.12 | 0.08 | 0.13 | 0.12 | 0.08 | 0.4147 | 0.6784 |
ROA | 0.07 | 0.06 | 0.07 | 0.07 | 0.06 | 0.08 | − 0.6159 | 0.538 |
MBV | 3.13 | 2.35 | 2.91 | 3.27 | 2.25 | 3.27 | 1.0636 | 0.2876 |
LOSS | 0.11 | 0.00 | 0.32 | 0.14 | 0.00 | 0.35 | 1.7590 | 0.0787 |
LNOA | 0.71 | 0.54 | 0.63 | 0.63 | 0.49 | 0.53 | − 3.3299 | 0.0009 |
TREM | − 0.05 | − 0.03 | 0.46 | 0.01 | 0.01 | 0.47 | 2.6727 | 0.0076 |
Variables | (1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) | (10) | (11) | (12) | (13) | (14) | (15) | (16) |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
1 ABS_DACC | 1 | |||||||||||||||
2 FDIR | − 0.04*** | 1 | ||||||||||||||
3 FEMEX | − 0.05*** | 0.64*** | 1 | |||||||||||||
4 FEMINEX | − 0.01 | 0.68*** | − 0.12*** | 1 | ||||||||||||
5 MALEX | 0.01 | − 0.23*** | − 0.05*** | − 0.25*** | 1 | |||||||||||
6 ACSIZE | − 0.07*** | 0.16*** | 0.04*** | 0.18*** | − 0.14*** | 1 | ||||||||||
7 IND | − 0.01 | 0.12*** | 0.07*** | 0.09*** | 0.05*** | 0.27*** | 1 | |||||||||
8 BIG4 | − 0.03** | 0.15*** | 0.10*** | 0.10*** | 0.05*** | 0.12*** | 0.15*** | 1 | ||||||||
9 SIZE | 0.01 | 0.19*** | 0.17*** | 0.09*** | 0.05*** | 0.27*** | 0.21*** | 0.25*** | 1 | |||||||
10 LEV | − 0.05*** | 0.10*** | 0.06*** | 0.07*** | 0.03** | 0.12*** | 0.11*** | 0.09 | 0.08*** | 1 | ||||||
11 OCF | 0.12*** | − 0.02 | − 0.02 | − 0.01 | − 0.02 | − 0.05*** | − 0.04*** | − 0.01 | 0.23*** | − 0.11*** | 1 | |||||
12 ROA | 0.05*** | 0.01 | 0.01 | 0.00 | − 0.03** | 0.01 | − 0.04*** | − 0.04*** | 0.31*** | − 0.14*** | 0.65*** | 1 | ||||
13 MBV | 0.13*** | 0.07*** | 0.03* | 0.06*** | − 0.02 | 0.02* | 0.07*** | 0.00 | 0.27*** | 0.42*** | 0.36*** | 0.33*** | 1 | |||
14 LOSS | 0.00 | − 0.03** | − 0.03** | − 0.01 | 0.03** | − 0.06*** | 0.00 | − 0.01 | − 0.28*** | 0.09*** | − 0.35*** | − 0.67*** | − 0.15*** | 1 | ||
15 LNOA | − 0.05*** | − 0.05*** | 0.01 | − 0.07*** | 0.03** | 0.02* | 0.00 | 0.04*** | 0.14*** | 0.14*** | − 0.08*** | − 0.18*** | − 0.18*** | 0.07*** | 1 | |
16 TREM | 0.03** | 0.00 | − 0.02* | 0.03** | − 0.02 | 0.06*** | 0.01 | 0.02 | − 0.06*** | 0.03** | − 0.30*** | − 0.21*** | − 0.19*** | 0.07*** | 0.00 | 1 |
4.2 Multivariate analysis
Variables | Column 1 | Column 2 | ||
---|---|---|---|---|
Coefficient | t-statistic | Coefficient | t-statistic | |
FDIR | − 0.022 | − 2.10** | ||
FEMEX | − 0.051 | − 3.82*** | ||
FEMINEX | − 0.010 | − 0.69 | ||
MALEX | − 0.007 | − 1.15 | ||
ACSIZE | − 0.005 | − 2.68*** | − 0.006 | − 3.04 |
IND | 0.007 | 0.44 | 0.008 | 0.51 |
BIG4 | − 0.002 | − 0.30 | − 0.002 | − 0.22 |
SIZE | − 0.002 | − 1.81* | − 0.002 | − 1.48 |
LEV | − 0.012 | − 5.05*** | − 0.011 | − 4.96*** |
OCF | 0.160 | 5.89*** | 0.158 | 5.82*** |
ROA | − 0.052 | − 1.38 | − 0.051 | − 1.36 |
MBV | 0.006 | 5.60*** | 0.006 | 5.53*** |
LOSS | 0.010 | 1.53 | 0.010 | 1.55 |
LNOA | − 0.001 | − 0.36 | − 0.001 | − 0.35 |
TREM | 0.019 | 4.33*** | 0.018 | 4.28*** |
_CONS | 0.064 | 4.53*** | 0.062 | 4.33*** |
Year fixed effect | YES | YES | ||
Adj_R2 | 9.51% | 9.67% | ||
F-statistic | 12.73 | 11.53 | ||
Number of Observations | 5398 | 5398 | ||
Panel B: Testing the significant differences between the coefficient on FEMEX, FEMINEX & MALEX | ||||
FEMEX = FEMINEX | 0.041 | F = 5.81 Prob > F = 0.0161 | ||
FEMEX = MALEX | 0.044 | F = 10.55 Prob > F = 0.0012 |
Variables | Columns 1 Total real earnings management | Column 2 Abnormal operating cash flows | Column 3 Abnormal production cost | Column 4 Abnormal discretionary expenses | ||||
---|---|---|---|---|---|---|---|---|
Coefficient | t-statistic | Coefficient | t-statistic | Coefficient | t-statistic | Coefficient | t-statistic | |
FEMEX | − 0.113 | − 1.43 | 0.010 | 0.55 | − 0.057 | − 1.63 | − 0.074 | − 1.59 |
FEMINEX | 0.037 | 0.44 | 0.018 | 0.95 | 0.016 | 0.49 | − 0.006 | − 0.13 |
MALEX | − 0.016 | − 0.42 | − 0.004 | − 0.43 | 0.000 | 0.00 | − 0.010 | − 0.41 |
ACSIZE | 0.022 | 1.92* | 0.008 | 3.42*** | 0.011 | 2.29** | 0.003 | 0.37 |
IND | − 0.079 | − 0.74 | − 0.079 | − 3.51*** | − 0.032 | − 0.74 | 0.051 | 0.75 |
BIG4 | 0.006 | 0.14 | 0.025 | 2.62*** | 0.004 | 0.25 | − 0.023 | − 0.74 |
SIZE | 0.009 | 1.05 | − 0.003 | − 1.51 | 0.003 | 0.75 | 0.008 | 1.59 |
LEV | 0.041 | 2.88*** | 0.012 | 4.81*** | 0.019 | 3.19*** | 0.013 | 1.60 |
OCF | − 1.435 | − 8.93*** | − 0.704 | − 20.82*** | − 0.472 | − 7.84*** | − 0.230 | − 2.02** |
ROA | − 0.307 | − 1.78* | − 0.102 | − 2.41** | − 0.383 | − 5.55*** | 0.194 | 1.60 |
MBV | − 0.028 | − 4.51*** | − 0.003 | − 2.32** | − 0.012 | − 4.26*** | − 0.014 | − 3.79*** |
LOSS | − 0.091 | − 3.08*** | − 0.011 | − 1.74* | − 0.067 | − 5.94*** | − 0.011 | − 0.56 |
LNOA | − 0.056 | − 3.63*** | − 0.034 | − 7.41*** | − 0.026 | − 3.95*** | 0.004 | 0.45 |
ABS_DACC | 0.368 | 4.12*** | 0.088 | 2.43** | 0.174 | 6.32*** | 0.080 | 1.02 |
_CONS | 0.221 | 2.19** | 0.055 | 2.37** | 0.080 | 2.00** | 0.076 | 1.16 |
Year fixed effect | YES | YES | YES | YES | ||||
Adj_R2 | 12.11% | 25.88% | 17.24% | 2.36% | ||||
F-statistic | 13.58 | 53.48 | 16.89 | 9.30 | ||||
Number of Observations | 5398 | 5398 | 5398 | 5398 |
5 Further analysis
5.1 Female directors’ characteristics
5.1.1 Outside directorships
Variables | Column 1 | Column 2 | ||
---|---|---|---|---|
Coefficient | t-statistic | Coefficient | t-statistic | |
FEMEX _OUT | 0.096 | 1.72* | ||
FEMEX _LESS_OUT | − 0.060 | − 4.61*** | ||
FEMINEX _OUT | 0.024 | 0.56 | ||
FEMINEX _LESS_OUT | − 0.012 | − 0.86 | ||
FEMEX _LONG_TEN | − 0.080 | − 3.89*** | ||
FEMEX _SHORT_TEN | − 0.040 | − 2.59** | ||
FEMINEX _ LONG_TEN | − 0.010 | − 0.41 | ||
FEMINEX _ SHORT_TEN | − 0.010 | − 0.61 | ||
MALEX | − 0.007 | − 1.16 | − 0.007 | − 1.13 |
ACSIZE | − 0.006 | − 3.02*** | − 0.006 | − 2.96*** |
IND | 0.008 | 0.49 | 0.008 | 0.48 |
BIG4 | − 0.001 | − 0.11 | − 0.002 | − 0.23 |
SIZE | − 0.002 | − 1.83* | − 0.002 | − 1.49 |
LEV | − 0.012 | − 5.06*** | − 0.011 | − 4.95*** |
OCF | 0.159 | 5.85*** | 0.159 | 5.83*** |
ROA | − 0.050 | − 1.35 | − 0.052 | − 1.40 |
MBV | 0.006 | 5.62*** | 0.006 | 5.56*** |
LOSS | 0.010 | 1.52 | 0.009 | 1.50 |
LNOA | − 0.001 | − 0.24 | − 0.001 | − 0.37 |
TREM | 0.018 | 4.33*** | 0.018 | 4.29*** |
_CONS | 0.064 | 4.48*** | 0.062 | 4.34*** |
Year Fixed effect | YES | YES | ||
Adj_R2 | 9.83% | 9.68% | ||
F-statistic | 10.60 | 10.49 | ||
Number of Observations | 5398 | 5398 | ||
Panel B: Testing the significant differences between coefficients | ||||
FEMEX _OUT = FEMEX _LESS_OUT | 0.156 | F = 8.04 Prob > F = 0.0047 | ||
FEMINEX _OUT = FEMINEX _LESS_OUT | 0.036 | F = 0.68 Prob > F = 0.4103 | ||
FEMEX _LONG_TEN = FEMEX _SHORT_TEN | 0.040 | F = 2.97 Prob > F = 0.0848 | ||
FEMINEX _ LONG_TEN = FEMINEX _ SHORT_TEN | 0.000 | F = 0.00 Prob > F = 0.9839 |
5.1.2 Tenure
6 Robustness analysis
6.1 Controlling for endogeneity
Variables | Column 1 First stage (FEMEX) | Column 2 First stage (FEMINEX) | Column 3 Second stage | |||
---|---|---|---|---|---|---|
Coefficient | t-statistic | Coefficient | t-statistic | Coefficient | z-statistic | |
FEMALE_INDUTRY | − 0.050 | − 0.56 | 0.609 | 6.41*** | ||
WO_EX_to_ME_EX | 0.410 | 7.08*** | − 0.190 | − 3.37*** | ||
FEMEX | − 0.863 | − 5.90*** | ||||
FEMINEX | − 0.309 | − 2.14** | ||||
MALEX | − 0.069 | − 6.08*** | − 0.103 | − 11.72*** | − 0.097 | − 4.11*** |
ACSIZE | − 0.010 | − 2.85*** | 0.013 | 3.93*** | − 0.009 | − 2.17** |
IND | 0.037 | 1.31 | 0.056 | 2.02** | 0.046 | 1.41 |
BIG4 | 0.028 | 3.28*** | 0.035 | 4.53*** | 0.031 | 2.46** |
SIZE | 0.013 | 4.82*** | 0.004 | 1.86* | 0.011 | 3.07*** |
LEV | 0.007 | 1.72* | 0.006 | 1.79* | − 0.002 | − 0.35 |
OCF | − 0.034 | − 0.85 | − 0.023 | − 0.60 | 0.110 | 2.52** |
ROA | − 0.007 | − 0.18 | − 0.019 | − 0.47 | − 0.059 | − 1.15 |
MBV | − 0.002 | − 1.03 | 0.000 | − 0.17 | 0.004 | 2.15** |
LOSS | 0.002 | 0.19 | 0.007 | 0.92 | 0.011 | 1.12 |
LNOA | − 0.004 | − 0.68 | − 0.013 | − 2.50** | − 0.013 | − 1.98** |
TREM | − 0.006 | − 1.12 | 0.005 | 0.79 | 0.012 | 2.06** |
_CONS | − 0.102 | − 3.95*** | − 0.115 | − 4.36*** | − 0.039 | − 1.16 |
Year Fixed effect | YES | YES | YES | |||
Adj_R2 | 11.57% | 12.58% | − 70.81% | |||
F-statistic | 17.04 | 18.74 | 9.63 | |||
F Test of excluded instruments | 25.41 | 20.92 | ||||
Cragg-Donald Wald F statistic | 69.643 | |||||
Number of Observations | 5398 | 5398 | 5398 | |||
Panel B: Testing the significant differences between the coefficient on FEMEX, FEMINEX & MALEX | ||||||
FEMEX = FEMINEX | 0.554 | chi2 = 10.55 Prob > chi2 = 0.0012 | ||||
FEMEX = MALEX | 0.766 | chi2 = 33.36 Prob > chi2 = 0.0000 |
Variables | Column 1 Inverse Millis ratio | Column 2 Propensity score matching using FEMEX | Column 3 Propensity score matching using FEMINEX | |||
---|---|---|---|---|---|---|
Coefficient | t-statistic | Coefficient | t-statistic | Coefficient | t-statistic | |
FEMEX | − 0.023 | − 1.86* | − 0.060 | − − 3.60*** | − 0.090 | − 3.78*** |
FEMINEX | 0.011 | 0.85 | 0.020 | 0.57 | 0.001 | 0.05 |
MALEX | − 0.006 | − 1.01 | 0.001 | 0.08 | − 0.003 | − 0.23 |
ACSIZE | 0.026 | 9.47*** | − 0.006 | − 1.83* | − 0.005 | − 1.87* |
IND | − 0.002 | − 0.10 | − 0.004 | − 0.16 | 0.051 | 2.12** |
BIG4 | − 0.001 | − 0.10 | − 0.027 | − 0.98 | 0.030 | 2.88*** |
SIZE | 0.011 | 6.65*** | − 0.001 | − 0.53 | − 0.002 | − 0.90 |
LEV | − 0.006 | − 2.90*** | − 0.015 | − 4.19*** | − 0.014 | − 4.25*** |
OCF | 0.141 | 5.43*** | 0.190 | 4.05*** | 0.203 | 4.52*** |
ROA | − 0.079 | − 2.21** | − 0.062 | − 1.06 | − 0.163 | − 2.76*** |
MBV | 0.004 | 3.99*** | 0.007 | 4.33*** | 0.004 | 2.47** |
LOSS | 0.005 | 0.80 | 0.008 | 0.84 | − 0.005 | − 0.49 |
LNOA | − 0.009 | − 2.92*** | 0.001 | 0.14 | − 0.002 | − 0.37 |
TREM | 0.017 | 4.11*** | 0.019 | 2.79*** | 0.032 | 4.58*** |
MILLS | 0.134 | 13.17*** | ||||
_CONS | − 0.283 | − 9.78*** | 0.089 | 2.61*** | 0.004 | 0.18 |
Year fixed effect | YES | YES | YES | |||
Adj_R2 | 12.76% | 10.73% | 10.49% | |||
F-statistic | 15.07 | 6.84 | 5.96 | |||
Number of Observations | 5396 | 1818 | 2090 | |||
Panel B: Testing the significant differences between the coefficient on FEMEX, FEMINEX & MALEX | ||||||
FEMEX = FEMINEX | 0.034 | F = 4.75 Prob > F = 0.0295 | 0.080 | F = 4.19 Prob > F = 0.0409 | 0.091 | F = 10.05 Prob > F = 0.0016 |
FEMEX = MALEX | 0.017 | F = 1.88 Prob > F = 0.1703 | 0.061 | F = 10.09 Prob > F = 0.0016 | 0.087 | F = 17.51 Prob > F = 0.0000 |
6.2 The presence of female directors with and without financial background
Variables | Coefficient | t-statistic |
---|---|---|
FEMEX | − 0.015 | − 3.66*** |
FEMINEX | − 0.003 | − 0.72 |
MALEX | 0.002 | 0.21 |
ACSIZE | − 0.005 | − 2.39** |
IND | 0.007 | 0.46 |
BIG4 | − 0.002 | − 0.28 |
SIZE | − 0.002 | − 1.58 |
LEV | − 0.012 | − 5.03*** |
OCF | 0.159 | 5.86*** |
ROA | − 0.052 | − 1.39 |
MBV | 0.006 | 5.56*** |
LOSS | 0.010 | 1.53 |
LNOA | − 0.001 | − 0.33 |
TREM | 0.018 | 4.28*** |
_CONS | 0.059 | 4.11*** |
Year Fixed effect | YES | |
Adj_R2 | 9.66% | |
F-statistic | 11.57 | |
Number of observations | 5398 | |
Panel B: Testing the significant differences between the coefficient on FEMEX, FEMINEX & MALEX | ||
FEMEX = FEMINEX | 0.012 | F = 5.74 Prob > F = 0.0168 |
FEMEX = MALEX | 0.017 | F = 4.47 Prob > F = 0.0347 |
6.3 Subgroup analysis
6.3.1 Financial crisis
Variables | Column 1 Financial crisis time | Column 2 Post financial crisis time | ||
---|---|---|---|---|
Coefficient | t-statistic | Coefficient | t-statistic | |
FEMEX | − 0.048 | − 2.95*** | − 0.050 | − 3.11*** |
FEMINEX | − 0.037 | − 2.84*** | 0.007 | 0.33 |
MALEX | − 0.013 | − 1.59 | − 0.004 | − 0.58 |
ACSIZE | − 0.004 | − 1.62 | − 0.007 | − 2.78*** |
IND | 0.006 | 0.34 | 0.011 | 0.48 |
BIG4 | − 0.009 | − 1.10 | 0.003 | 0.35 |
SIZE | 0.000 | − 0.15 | − 0.003 | − 1.63 |
LEV | − 0.008 | − 3.65*** | − 0.013 | − 4.28*** |
OCF | 0.121 | 4.30*** | 0.176 | 4.44*** |
ROA | − 0.073 | − 1.96* | − 0.033 | − 0.60 |
MBV | 0.004 | 4.02*** | 0.007 | 4.84*** |
LOSS | 0.004 | 0.56 | 0.014 | 1.60 |
LNOA | − 0.011 | − 3.45*** | 0.004 | 1.00 |
TREM | 0.011 | 2.93*** | 0.023 | 3.62*** |
_CONS | 0.071 | 4.70*** | 0.050 | 2.64*** |
Year Fixed effect | YES | YES | ||
Adj_R2 | 7.77% | 10.10% | ||
F-statistic | 7.43 | 11.38 | ||
Number of Observations | 1882 | 3516 | ||
Panel B: Testing the significant differences between the coefficient on FEMEX, FEMINEX & MALEX | ||||
FEMEX = FEMINEX | 0.011 | F = 0.46 Prob > F = 0.4985 | 0.057 | F = 6.36 Prob > F = 0.0118 |
FEMEX = MALEX | 0.035 | F = 4.14 Prob > F = 0.0423 | 0.046 | F = 8.06 Prob > F = 0.0046 |
6.4 Meeting earnings benchmarks
Variables | Column 1 | Column 2 | ||||||
---|---|---|---|---|---|---|---|---|
Firms reporting increase in their net income | Other firms | Firms reporting small increase in their net income | Other firms | |||||
Coefficient | t-statistic | Coefficient | t-statistic | Coefficient | t-statistic | Coefficient | t-statistic | |
FEMEX | − 0.054 | − 3.20*** | − 0.047 | − 2.52** | − 0.072 | − 2.67*** | − 0.046 | − 3.19*** |
FEMINEX | − 0.020 | − 1.15 | 0.011 | 0.55 | 0.008 | 0.23 | − 0.013 | − 0.92 |
MALEX | − 0.006 | − 0.78 | − 0.010 | − 1.08 | − 0.013 | − 1.02 | − 0.006 | − 0.88 |
ACSIZE | − 0.006 | − 2.57** | − 0.005 | − 2.02** | − 0.006 | − 1.32 | − 0.006 | − 2.92*** |
IND | − 0.007 | − 0.33 | 0.032 | 1.41 | − 0.003 | − 0.09 | 0.010 | 0.60 |
BIG4 | 0.002 | 0.25 | − 0.005 | − 0.49 | 0.008 | 0.60 | − 0.003 | − 0.37 |
SIZE | − 0.003 | − 1.76* | − 0.001 | − 0.40 | − 0.005 | − 1.69* | − 0.001 | − 1.04 |
LEV | − 0.009 | − 3.08*** | − 0.013 | − 4.46*** | − 0.013 | − 1.86* | − 0.011 | − 4.87*** |
OCF | 0.118 | 3.31*** | 0.197 | 4.87*** | 0.125 | 1.56 | 0.159 | 5.58*** |
ROA | 0.054 | 1.10 | − 0.205 | − 3.89*** | − 0.039 | − 0.25 | − 0.053 | − 1.38 |
MBV | 0.005 | 4.31*** | 0.005 | 3.98*** | 0.010 | 2.64*** | 0.005 | 4.93*** |
LOSS | 0.021 | 2.24** | − 0.009 | − 1.10 | 0.002 | 0.11 | 0.010 | 1.53 |
LNOA | 0.000 | 0.06 | − 0.003 | − 0.68 | 0.006 | 1.00 | − 0.002 | − 0.69 |
TREM | 0.014 | 2.68*** | 0.024 | 3.73*** | 0.035 | 3.83*** | 0.016 | 3.39*** |
_CONS | 0.075 | 4.11*** | 0.039 | 2.21** | 0.071 | 2.29** | 0.060 | 3.92*** |
Year Fixed effect | YES | YES | YES | YES | ||||
Adj_R2 | 9.97% | 10.00% | 13.03% | 8.99% | ||||
F-statistic | 8.09 | 6.77 | 3.77 | 9.77 | ||||
Number of Observations | 3266 | 2132 | 826 | 4572 | ||||
Panel B: Testing the significant differences between the coefficient on FEMEX, FEMINEX & MALEX | ||||||||
FEMEX = FEMINEX | 0.034 | F = 2.52 Prob > F = 0.1129 | 0.058 | F = 5.49 Prob > F = 0.0194 | 0.080 | F = 4.31 Prob > F = 0.0384 | 0.033 | F = 3.58 Prob > F = 0.0589 |
FEMEX = MALEX | 0.048 | F = 7.63 Prob > F = 0.0058 | 0.037 | F = 3.70 Prob > F = 0.0546 | 0.059 | F = 5.74 Prob > F = 0.0169 | 0.040 | F = 7.47 Prob > F = 0.0064 |
6.5 Income smoothing
Column 1 Income smoothers | Column 2 Other firms | |||
---|---|---|---|---|
Coefficient | t-statistic | Coefficient | t-statistic | |
FEMEX | − 0.074 | − 3.05*** | − 0.045 | − 2.91*** |
FEMINEX | 0.000 | − 0.02 | − 0.011 | − 0.73 |
MALEX | 0.004 | 0.30 | − 0.011 | − 1.56 |
ACSIZE | − 0.004 | − 1.03 | − 0.006 | − 3.15*** |
IND | − 0.013 | − 0.46 | 0.019 | 1.03 |
BIG4 | − 0.001 | − 0.12 | − 0.001 | − 0.12 |
SIZE | − 0.006 | − 2.10** | − 0.001 | − 0.86 |
LEV | − 0.009 | − 1.81* | − 0.012 | − 4.57*** |
OCF | 0.116 | 2.26** | 0.178 | 5.63*** |
ROA | − 0.002 | − 0.03 | − 0.061 | − 1.54 |
MBV | 0.007 | 3.21*** | 0.005 | 4.70*** |
LOSS | − 0.018 | − 1.49 | 0.014 | 2.07** |
LNOA | 0.004 | 0.65 | − 0.002 | − 0.71 |
TREM | 0.033 | 4.14*** | 0.013 | 2.63*** |
_CONS | 0.100 | 3.55*** | 0.048 | 3.12*** |
Year fixed effect | YES | YES | ||
Adj_R2 | 12.29% | 9.02% | ||
F-statistic | 4.76 | 9.46 | ||
Number of observations | 1349 | 4049 | ||
Panel B: Testing the significant differences between the coefficient on FEMEX, FEMINEX & MALEX | ||||
FEMEX = FEMINEX | 0.074 | F = 4.94 Prob > F = 0.0266 | 0.034 | F = 3.17 Prob > F = 0.0752 |
FEMEX = MALEX | 0.078 | F = 8.22 Prob > F = 0.0043 | 0.034 | F = 5.17 Prob > F = 0.0231 |