Variable | Variable definitions |
Explained variable |
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Inst | On June 30, 2008, the shareholding ratio of institutional investors in the company |
Explanatory variables (characteristic variables of critical audit matters) |
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Num_cam | The number of critical audit matters |
Freq_num | The average value of proportion of the numerical value contained in each critical audit matter (the total value of each proportions divided by the number of critical audit matters of the company) |
Freq_per | The average value of proportion of the percentage value contained in each critical audit matter (the total value of each proportions divided by the number of critical audit matters of the company) |
Freq_spe | Specific critical audit matters, the average value of proportion of the company’s specific critical audit matters to the company’s number of critical audit matters (define the company’s specific critical audit matters as critical audit matters whose probability of occurrence is less than 50%) |
The Form | Format of disclosure of critical audit matters: define company with tabular as 1, textual narratives as 0. |
Control variable |
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| On June 30, 2017, institutional investors in the company’s shareholding |
(1) company characteristic variables (9) |
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Lev | The company’s asset-liability ratio |
Eps | Basic earnings per share of the company |
Ocfps | Operating cash flow per share of the company |
The Size | The logarithm of a company’s total assets |
Price, | Year-end closing price |
Divi | Whether the company pays cash dividends at the end of the year: define company with dividend as 1, otherwise as 0. |
The State | Define the property right of the company is 1 for state-owned company and 0 for non-state-owned company |
Opi | Audit opinion. Define a clean report as 1, otherwise as 0. |
Big 4 | Accounting firm. Define the company audited by international big 4 accounting firm as 1, otherwise as 0. |
(2) industry control variables (21) |
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Sic 2 | According to the industry classification of China securities regulatory commission in 2012, the industry types are controlled |