Panel A: Firms’ Input in Innovation and stock price crash risk―distinguish auditor supervision

VARIABLES

NCSKEW

Crash

Models

(1a)

(1b)

(2a)

(2b)

Groups

Big 4

Not Big 4

Big 4

Not Big 4

R&D

0.0020

−0.0030***

−0.0310

−0.0107*

(0.44)

(−3.16)

(−0.96)

(−1.87)

CV

YES

YES

YES

YES

Constant

−0.0294

0.3052*

4.1147

−1.1306

(−0.05)

(1.90)

(0.79)

(−1.12)

Observations

593

12,022

506

12,017

Adj. R2

0.0975

0.0696

0.151

0.0591

Panel B: Firms’ Input in Innovation and stock price crash risk―distinguish legal environment

VARIABLES

NCSKEW

Crash

Models

(1a)

(1b)

(2a)

(2b)

Groups

Good legal environment

Bad legal environment

Good legal environment

Bad legal environment

R&D

0.0036

−0.0035***

−0.0191

−0.0118**

(0.97)

(−3.65)

(−0.77)

(−2.05)

CV

YES

YES

YES

YES

Constant

−0.1448

0.2727*

−3.5089

−1.2301

(−0.25)

(1.69)

(−0.81)

(−1.22)

Observations

799

11,816

626

11,811

Adj. R2

0.112

0.0690

0.123

0.0590