Panel A: results of the correlation between cost stickiness and the possibility of future losses | Panel B: results of the correlation between cost stickiness and audit costs | ||||
Variable | Explained variable—later_loss | Variable | Explained variable—ln_auditfee | ||
Cross-section regression | Panel regression | Mixed regression | Fixed effect | ||
| (1) | (2) |
| (1) | (2) |
dcscost | 2.053*** | 1.875*** | dcscost | 0.137** | 0.078** |
| (5.47) | (4.39) |
| (2.29) | (2.34) |
size | −0.296*** | −0.256*** | size | 0.366*** | 0.339*** |
| (−11.76) | (−7.90) |
| (46.74) | (33.15) |
lev | 1.432*** | 1.445*** | lev | 0.035 | 0.014 |
| (10.16) | (8.19) |
| (0.96) | (0.42) |
cfratio | −0.839*** | −0.911*** | cfratio | 0.057 | −0.026 |
| (−5.07) | (−4.34) |
| (1.39) | (−0.62) |
growth | −0.046*** | −0.051*** | growth | 0.001 | −0.000 |
| (−8.31) | (−8.30) |
| (0.71) | (−0.25) |
loss | 0.590*** | −0.166 | loss | 0.068*** | 0.021*** |
| (7.01) | (−1.64) |
| (5.05) | (2.70) |
ownership | −1.075*** | −1.471*** | ownership | −0.100** | 0.068 |
| (−5.81) | (−6.11) |
| (−2.20) | (1.08) |
stock_e | −0.816*** | −1.011*** | stock_e | −0.118*** | −0.084* |
| (−3.28) | (−3.36) |
| (−2.86) | (−1.71) |
same | 0.037 | 0.063 | same | 0.025* | 0.008 |
| (0.58) | (0.81) |
| (1.96) | (0.80) |
EID | 0.310 | −0.044 | EID | 0.190* | −0.036 |
| (0.66) | (−0.08) |
| (1.83) | (−0.51) |
|
|
| big4 | 0.729*** | 0.265*** |
|
|
|
| (18.19) | (5.46) |
|
|
| audittype | 0.183*** | 0.094*** |
|
|
|
| (8.02) | (5.70) |
_cons | 3.266*** | 2.315*** | _cons | 5.075*** | 5.888*** |
| (5.64) | (3.12) |
| (29.26) | (26.40) |
Ind./Year | Yes | Yes | Ind./Year | Yes | Yes |
N | 20,400 | 20,400 | N | 22,868 | 22,887 |
adj-R2 | - | - | adj-R2 | 0.672 | 0.645 |
F | - | - | F | 429.2*** | 405.77*** |