Table 5: Political connection and earnings management This table reports the estimates of the following regression model for two measures of earnings management. ACC/DACC = + + Gender + Age + Duality + Size + α β1PCEO β3CEO β4CEO β5Firm + Board Size + Independence + + + β6Leverage β7 β8Board β9HBshare β10Concentration 2-10 + SEO + β11Largest β12 ε The description of the variables is summarized in the Appendix. *, ** or *** indicates significance at the 90%, 95% or 99% confidence levels, respectively. Expected Relation (1)ACC (2)DACC - PCEO -0.0051** -0.1101*** + CEO Gender -0.0005 -0.1416*** - CEO Age -0.0097* -0.0906** + CEO Duality -0.0004 0.0147 + Firm Size 0.0062*** -0.0516** + Leverage -0.0730*** 0.0708** +/- Board Size -0.0058 -0.1209*** - Board Independence -0.0028 0.0406 - HBshare -0.0106*** -0.0057 + Concentration 0.0208*** 0.1564*** - Largest 2-10 0.0377*** 0.1815*** + SEO 0.0147*** 0.0215 Concept Yes Yes Year effects Yes Yes Industry fixed effects Yes Yes # of observations 11117 11117 Overall R2 0.0475 0.0278
Table 5: Political connection and earnings management This table reports the estimates of the following regression model for two measures of earnings management. ACC/DACC = α + β1PCEO + Gender + β3CEO Age + β4CEO Duality + β5Firm Size + β6Leverage + β7 Board Size + β8Board Independence + β9HBshare + β10Concentration + β11Largest 2-10 + β12 SEO + ε The description of the variables is summarized in the Appendix. *, ** or *** indicates significance at the 90%, 95% or 99% confidence levels, respectively. Expected Relation (1)ACC (2)DACC PCEO - -0.0051** -0.1101*** CEO Gender + -0.0005 -0.1416*** CEO Age - -0.0097* -0.0906** CEO Duality + -0.0004 0.0147 Firm Size + 0.0062*** -0.0516** Leverage + -0.0730*** 0.0708** Board Size +/- -0.0058 -0.1209*** Board Independence - -0.0028 0.0406 HBshare - -0.0106*** -0.0057 Concentration + 0.0208*** 0.1564*** Largest 2-10 - 0.0377*** 0.1815*** SEO + 0.0147*** 0.0215 Concept Yes Yes Year effects Yes Yes Industry fixed effects Yes Yes # of observations 11117 11117 Overall R2 0.0475 0.0278
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