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Table 5 Multinomial Regression Results for 2009–2010

From: Voluntary disclosure of internal control and auditor’s attestation: evidence from China

 

Separate logistic regressions

Multinomial logistic regressions (Model 3)

Model 1

Discloser versus non-disclosers

Model 2

Self-assessment report only versus Self-assessment report with auditor’s attestation

(1)

Self-assessment report only versus non-disclosers (ICVD1)

(2)

Self-assessment report with auditor’s attestation versus non-disclosers (ICVD2)

(3)

Diff between (1) and (2) Chi-square

SEO

0.41 (1.47)

0.39 (0.86)

0.11 (0.29)

0.68** (2.09)

1.73

FUND

3.61** (2.22)

6.47*** (2.77)

0.16 (0.08)

6.26*** (3.32)

8.23***

GOV

0.21 (1.15)

0.42 (1.58)

−0.12 (−0.05)

0.43* (1.89)

2.78*

GOV*CENTRL

0.30 (1.38)

1.03*** (3.64)

−0.29 (−0.97)

0.67*** (2.83)

11.16**

GOV*SEO

−0.24 (−0.67)

−0.58 (−1.06)

0.21 (0.44)

−0.62 (−1.49)

2.42

SIZE

0.67*** (8.25)

−0.05 (−0.50)

0.71*** (7.33)

0.65*** (7.14)

 

GROW

−0.11* (−1.76)

0.11 (0.99)

−0.21 (−0.44)

−0.08 (−1.59)

 

ROE

−0.01 (−0.24)

0.57 (1.43)

−0.22 (−0.65)

0.02 (0.48)

 

LEV

−1.80*** (−4.06)

0.82 (1.33)

−2.13*** (−3.90)

−1.43*** (−2.81)

 

INDIR

0.57 (0.42)

0.51 (0.31)

0.33 (0.22)

1.02 (0.62)

 

CLIST

16.02*** (28.46)

0.34 (0.46)

14.92*** (23.86)

15.27*** (24.06)

 

BIG4

0.35 (1.02)

−1.77*** (−4.11)

0.93** (2.65)

−0.71 (−1.62)

 

INV

0.98** (2.24)

−0.15 (−0.22)

1.00* (1.88)

0.95* (1.74)

 

AGE

−0.07*** (−3.61)

−0.12*** (−4.31)

−0.02 (−0.83)

−0.13*** (−5.42)

 

Industry MBR

−0.03 (−0.34)

0.11 (0.91)

−0.07 (−0.71)

0.01 (0.11)

 

# of Obs.

1621

694

1621

  

Pseudo R2

17.28%

11.96%

15.47%

  
  1. This table presents the results of logistic regressions for the period 2009–2010. Model 1 is a simple logistic regression examining the likelihood of disclosing an IC self-assessment report. Model 2 is also a simple logistic regression examining the likelihood of attaining an auditor’s attestation on the self-assessment report among disclosers. Model 3 is for multinomial logistic regressions; we use non-disclosers as our reference group, and examine the likelihood simultaneously for firms only disclosing an IC self-assessment report (ICVD1) and for firms both disclosing an IC self-assessment report and attaining an auditor’s attestation (ICVD2) on the report. Estimated coefficients and z statistics (in parentheses) are reported
  2. *, **, and ***denote the significance levels at 10, 5 and 1%, respectively