6: Political connection and earnings management, lagged value approach This table reports the estimates of the following regression model for two measures of earnings management. ACC /DACC = + + Gender t-1 + Age t-1 + Duality t-1 + α β1PCEOt-1 β2CEO β3CEO β4CEO Size t-1 + t-1 + Board Size t-1 + Independence t-1 + t-1 + β5Firm β6Leverage β7 β8Board β9HBshare t-1 + 2-10 t-1 + SEO t-1 + β10Concentration 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 - PCEOt-1 -0.0045** -0.0986*** + CEO Gender t-1 0.0010 -0.1138*** - CEO Age t-1 -0.0104* -0.1041** + CEO Duality t-1 0.0000 0.0017 + Firm Size t-1 0.0014 -0.0644*** + Leverage t-1 -0.0520*** 0.1051*** +/- Board Size t-1 -0.0045 -0.1263*** Board Independence - 0.0008 0.0579* - HBshare t-1 -0.0036 0.0104 + Concentration t-1 0.0299*** 0.0758 - Largest 2-10 t-1 0.0362*** 0.0884 + SEO 0.0184*** 0.0123 Concept Yes Yes Year fixed effects Yes Yes Industry fixed effects Yes Yes # of observations 9348 9348 Overall R2 0.0343 0.0337
6: Political connection and earnings management, lagged value approach This table reports the estimates of the following regression model for two measures of earnings management. ACC /DACC = α + β1PCEOt-1 + β2CEO Gender t-1 + β3CEO Age t-1 + β4CEO Duality t-1 + β5Firm Size t-1 + β6Leverage t-1 + β7 Board Size t-1 + β8Board Independence t-1 + β9HBshare t-1 + β10Concentration t-1 + β11Largest 2-10 t-1 + β12 SEO t-1 + 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 PCEOt-1 - -0.0045** -0.0986*** CEO Gender t-1 + 0.0010 -0.1138*** CEO Age t-1 - -0.0104* -0.1041** CEO Duality t-1 + 0.0000 0.0017 Firm Size t-1 + 0.0014 -0.0644*** Leverage t-1 + -0.0520*** 0.1051*** Board Size t-1 +/- -0.0045 -0.1263*** Board Independence - 0.0008 0.0579* HBshare t-1 - -0.0036 0.0104 Concentration t-1 + 0.0299*** 0.0758 Largest 2-10 t-1 - 0.0362*** 0.0884 SEO + 0.0184*** 0.0123 Concept Yes Yes Year fixed effects Yes Yes Industry fixed effects Yes Yes # of observations 9348 9348 Overall R2 0.0343 0.0337
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