Variable Type | Name | Symbol | Variable Definition | |
Interpreted variable | Audit pricing | Lnfee | Natural logarithm of annual audit fees | |
Explanatory variables | Other comprehensive income | OCI | Natural logarithm of the absolute value of other comprehensive income | |
Auditor practice experience | Experience | Average number of years of signed auditor practice | ||
Control variable | Audited unit | ROA | Return on assets, annual net profit divided by average total assets | |
Rec | Accounts receivable ratio, total accounts receivable at the end of the period divided by total assets at the end of the period | |||
Inv | Inventory share, total inventory at the end of the period divided by total assets at the end of the period | |||
Cur | Current ratio, total liquidity at the end of the period divided by total current liabilities at the end of the period | |||
Size | Company size, natural logarithm of total assets at the end of the period | |||
Mb | Market value book ratio, ending market value divided by book value of total assets at the end of the period | |||
Level | Asset-liability ratio, total liabilities at the end of the period divided by total assets at the end of the period | |||
Loss | Loss situation, if the net profit is less than 0, take 1; otherwise take 0 | |||
Top10 | The concentration of equity, the sum of the shareholding ratio of the top ten shareholders | |||
Audit firm characteristics | Opinion | The type of audit opinion, if it is a non-standard audit opinion, take 1; otherwise, take 0 | ||
Big4 | Virtual variables, if the audit of the "big4" accounting firm takes 1, otherwise take 0 | |||
Annual variable | Year | Annual dummy variable | ||
Industry variable | Industry | Industry dummy variable |