dp0609 - FEP - Universidade do Porto

Notes:
Table 11 (continued)
In model 1 the dependent variable was redefined by assigning it a
value of 1 if a qualified opinion was issued (as the result of
disagreement and/or scope limitation), 0 in the opposite case. In the
remaining models OPIN=1 if qualifications or emphases were
recorded whatsoever, 0 in the opposite case.
NUM = number of board members;
MEET = total number of board meetings in each year;
EC = 1 if an executive committee is reported at year-end; 0 if not;
PNEXEC = proportion of non-executive members in the board;
DUAL = 1 if the Chairman of the Board and the CEO are the same
person, 0 if not;
LASSETS = log of total assets, in thousands of euros;
LOSS = 1, if firm reports net losses for at least two consecutive
years, 0 if not;
ER = Equity ratio, computed as the ratio between book equity and
total assets ;
ROA = Asset profitability, computed as earnings before interest,
taxes and extraordinary items divided by total assets;
PBV = price book value;
BIG4 = 1, if the audit report was issued by one of the four largest
international audit firms, 0 in the opposite case;
DIVBI = 1, if the company distributed dividends in the year, 0 if not;
NEXEC51 = 1, if the proportion of non-executive members exceeds
50%, 0 if this is not the case.
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