Panel A: Audit firm size and disclosure characteristics of key audit matters | ||||||
| Big 4 (1) N = 352 | Big 8 (2) N = 3580 | Other local audit firm (3) N = 1723 |
(1) vs. (3) |
(2) vs. (3) |
(1) vs.(2) |
Mean | Mean | Mean | Mean difference | Mean difference | Mean difference | |
Kam_num | 2.134 | 2.124 | 2.048 | 0.086** | 0.076*** | 0.010 |
Length_sum | 1328.821 | 1222.213 | 1131.525 | 197.296*** | 90.688*** | 106.608*** |
Length_unit | 635.566 | 576.714 | 554.652 | 80.915*** | 22.063*** | 58.852*** |
Specificity1_sum | 119.190 | 104.442 | 94.942 | 24.248*** | 9.500*** | 14.749*** |
Specificity1_unit | 57.175 | 48.943 | 46.399 | 10.776*** | 2.544*** | 8.232*** |
Specificity2_sum | 0.192 | 0.185 | 0.176 | 0.016*** | 0.009*** | 0.007 |
Specificity2_unit | 0.090 | 0.086 | 0.085 | 0.005*** | 0.001 | 0.004*** |
Ind spec_sum | 0.793 | 0.899 | 0.861 | −0.068* | 0.038** | −0.107*** |
Panel B: Tenure of audit firmb and disclosure characteristics of key audit matters | ||||||
| Short audit tenure (1) N = 1962 | Long audit tenure (2) N = 3693 | (1) vs (2) | |||
Mean | Mean | Mean difference | ||||
Kam_num | 2.069 | 2.118 | −0.049*** | |||
Length_sum | 1181.227 | 1211.838 | −30.611** | |||
Length_unit | 573.966 | 573.491 | 0.476 | |||
Specificity1_sum | 99.470 | 104.057 | −4.587*** | |||
Specificity1_unit | 47.948 | 49.070 | −1.122** | |||
Specificity2_sum | 0.178 | 0.185 | −0.007*** | |||
Specificity2_unit | 0.085 | 0.087 | −0.002** | |||
Ind spec_sum | 0.923 | 0.858 | 0.065*** | |||
Panel C: Industry expertise of audit firms and disclosure characteristics of key audit matters | ||||||
| No industry expertise (1) N = 2598 | Industry expertise (2) N = 3066 | (1) vs (2) | |||
| Mean | Mean | Mean difference | |||
Kam_num | 2.085 | 2.115 | −0.029 | |||
Length_sum | 1176.670 | 1221.946 | −45.276*** | |||
Length_unit | 566.568 | 579.641 | −13.073*** | |||
Specificity1_sum | 98.710 | 105.636 | −6.926*** | |||
Specificity1_unit | 47.277 | 49.866 | −2.589*** | |||
Specificity2_sum | 0.179 | 0.186 | −0.007*** | |||
Specificity2_unit | 0.085 | 0.087 | −0.002*** | |||
Ind spec_sum | 0.854 | 0.903 | −0.049*** |