dp0609 - FEP - Universidade do Porto

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Table 8 Distribution of qualitative variables according to audit opinion type (clean = 44, qualified = 47) EC DUAL LOSS p-value = 0.028 p-value = 0.67 p-value = 0.00 Type of With Without audit NonNon- consecutive consecutive net opinion Existing existing Existing existing net losses losses Clean 21 23 31 13 3 41 Modified 12 35 35 12 21 26 Notes: EC = 1 if an executive committee is reported at year-end; 0 otherwise; DUAL = 1 if the Chairman of the Board and the CEO are the same person, 0 otherwise; LOSS = 1, if a firm reports net losses in the last two years, 0 otherwise. Table 9 Pearson and Spearman correlation matrixes NUM MEET PNEXEC LASSETS ER ROA PBV NUM 1 -0.21* 0.32** 0.56** -0.06 0.02 0.21* MEET -0.29** 1 -0.49** 0.07 0.09 0.03 -0.21* PNEXEC 0.28** -0.43** 1 0.05 -0.17 -0.07 0.20 LASSETS 0.52** -0.04 0.00 1 -0.32** 0.20 0.19 ER -0.08 -0.03 -0.15 -0.25* 1 0.26** -0.20 ROA 0.07 0.07 -0.08 0.24** 0.24* 1 -0.11 PBV 0.34** -0.16 0.15 0.33** -0.21* 0.35** 1 Notes: Pearson correlations above the main diagonal, and Spearman correlations below. * and ** indicate significant correlations at the 5% or 1% levels of significance, respectively. NUM = number of board members; MEET = total number of board meetings in each year; PNEXEC = proportion of non-executive members in the board; ASSETS = total assets, in thousands of euros; ER = Equity ratio, computed as the ratio between book equity and total assets; ROA = Asset profitability, computed as earnings before taxes and extraordinary items divided by total assets; PBV = price book value. 57
Table 10 Logistic regression results Pr ob( OPIN = 1) = F( α + β NUM + β MEET + β EC + β PNEXEC + β DUAL + β LASSETS + β LOSS + β ER + β ROA + β PBV + ε ) 6 7 1 8 Model 1 Model 2 Model 3 Model 4 Model 5 Expected Coefficient Coefficient Coefficient Coefficient Coefficient Variable sign (p-value) (p-value) (p-value) (p-value) (p-value) Constant ? 0.63 0.62 -2.51 -0.36 -2.06 (0.82) (0.82) (0.43) (0.91) (0.60) NUM ? -0.04 -0.04 -0.00 0.07 0.08 (0.73) (0.75) (0.99) (0.63) (0.59) MEET - 0.00 -0.00 -0.04 -0.03 (0.96) (0.96) (0.28) (0.32) EC - -2.10 -2.03 -2.16 (0.01) (0.02) (0.01) PNEXEC - -3.53 -3.14 (0.02) (0.05) DUAL + 0.86 (0.31) LASSETS ? 0.16 0.16 0.41 0.37 0.44 (0.48) (0.49) (0.13) (0.20) (0.15) LOSS + 2.11 2.11 2.87 3.07 3.33 (0.03) (0.03) (0.01) (0.01) (0.00) 9 58 2 10 3 4 5
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DP 2006 - 09 Board Structure and Mo
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BOARD STRUCTURE AND MODIFIED AUDIT
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ecent accounting scandals, the “S
Page 7 and 8: are higher if a firm is identified
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Page 15 and 16: Pr ob( OPIN = 1) = F( α + β NUM +
Page 17 and 18: Asset profitability (ROA) is introd
Page 19 and 20: Given the above, our first step in
Page 21 and 22: 5. Empirical results 5.1. Auditing
Page 23 and 24: information on any executive commit
Page 25 and 26: The extant literature (e.g., Beasle
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Page 29 and 30: (p-value=0.34), at the same time th
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Page 33 and 34: Klein (2002a) finds evidence that a
Page 35 and 36: corporate governance reports of lis
Page 37 and 38: 26 Mota—Engil, SGPS, SA Mota-Engi
Page 39 and 40: Bradshaw, M. T., S. A. Richardson a
Page 41 and 42: Dechow, P.M. and D. J. Skinner (200
Page 43 and 44: Gaver, J. J., K. M. Gaver and J. R.
Page 45 and 46: Kang, S. and K. Sivaramakrishnan (1
Page 47 and 48: Nelson, M. W., J. A. Elliott and R.
Page 49 and 50: Teoh, S. H., I. Welch and T. J. Won
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Page 53 and 54: Table 2 Sample Industry Distributio
Page 55 and 56: Variable Mean Std Dev. Quantitative
Page 57: Table 7 Mean (median) figures of va
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