Panel A: Big 4 CPA firms and non-Big 4 CPA firms

Variables^a

Total

Big 4 CPA firms

Non-Big 4 CPA firms

Pred. Sign

Coef.

z-value^b

Coef.

z-value

Coef.

z-value

DME

+

0.1600

4.11***

0.1666

4.07 ***

0.0905

0.72

SIZE

+/−

0.2390

7.31***

0.2139

6.30***

0.3404

2.78***

DE

+/−

−0.6221

−3.20***

−0.3633

−1.78*

−2.0843

−3.01***

ROA

+/−

1.1307

2.34**

1.2333

2.39**

−0.6159

−0.36

DP

+/−

−0.0012

−3.48***

−0.0013

−3.82***

0.2574

1.33

BHold

+/−

0.3671

1.56*

0.2858

1.14

0.8660

0.99

MHold

+/−

0.5387

0.47

0.7117

0.59

2.1789

0.54

PDM

+/−

−0.7258

−3.04***

−0.8365

−3.18***

0.7292

1.23

AGE

+/−

−0.0090

−3.40***

−0.0076

−2.70***

−0.0045

−0.38

Foreign

+/−

0.8459

2.82***

0.8869

2.82***

−0.1556

−0.17

Public

+/−

2.1233

2.58***

2.6063

3.58***

−2.5569

−3.09***

Wald χ²

291.55***

274.59***

50.81***

Pseudo R²

6.56%

6.49%

7.06%

N

1067

947

120

Panel B: Consider different Big 4 CPA firms

Variables ^a

Deloitte

PWC

KPMG

EY

Pred. Sign

Coef.

z-value ^b

Coef.

z-value

Coef.

z-value

Coef.

z-value

DME

+

0.1532

2.60***

0.2027

2.34**

0.2199

2.49**

0.0188

0.14

SIZE

+/−

0.2380

3.93***

0.1741

2.56 **

0.1947

3.13***

0.1564

1.72*

DE

+/−

−0.4514

−1.41

0.2831

0.71

−0.6049

−1.38

−0.9564

−1.52

ROA

+/−

1.5364

1.87*

0.6087

0.62

1.2878

1.28

1.0269

0.72

DP

+/−

0.1154

0.76

−0.0506

−0.40

−0.0014

−3.40***

−0.0029

−1.06

BHold

+/−

0.1163

0.28

1.2698

2.56**

−0.2403

−0.43

−0.3384

−0.46

MHold

+/−

−0.3828

−0.30

0.6539

0.21

5.1155

1.48

0.7608

0.17

PDM

+/−

−0.9578

−2.49**

−0.4895

−0.92

−1.7062

−2.63***

0.1162

0.12

AGE

+/−

−0.0079

−1.77*

−0.0050

−0.84

−0.0043

−0.71

−0.0106

−1.25

Foreign

+/−

0.2075

0.43

1.0536

1.70*

1.6481

2.51**

1.8961

2.32**

Public

+/−

2.8456

2.85***

4.0404

1.92*

2.6700

1.34

1.5199

1.67*

Wald χ²

105.51***

68.55***

97.21***

46.70***

Pseudo R²

6.88%

6.38%

9.64%

5.63%

N

386

226

224

111