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Table 6 Multinomial Regression Results for Firms with IC Weaknesses (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

−14.86*** (−15.82)

0.07 (0.08)

−16.72*** (−14.62)

−14.54*** (10.77)

2.68

FUND

10.97** (2.21)

−4.12 (−0.49)

14.73*** (2.86)

11.40 (1.60)

0.31

GOV

−0.81 (−1.35)

1.07 (0.71)

−0.85 (−1.47)

0.10 (0.08)

0.58

GOV*CENTRL

0.77 (1.17)

1.16 (0.93)

0.68 (1.00)

1.39 (1.57)

0.61

GOV*SEO

14.91*** (12.32)

 

−0.36 (−0.24)

15.31*** (10.61)

128.26***

SIZE

1.01*** (3.23)

0.16 (0.35)

0.87*** (2.64)

0.97** (2.57)

 

GROW

−0.67* (−1.65)

0.31 (0.52)

−0.82* (−1.87)

−0.98** (−2.08)

 

ROE

1.27 (0.67)

−2.53 (−0.61)

2.27 (0.87)

1.80 (0.45)

 

LEV

−0.25 (−0.18)

2.68 (0.64)

−0.67 (−0.46)

−1.78 (−0.66)

 

INDIR

−5.14 (−1.02)

−2.94 (−0.29)

−2.62 (−0.51)

0.28 (0.03)

 

CLIST

13.58*** (7.82)

−0.01 (−0.01)

15.66*** (8.23)

13.27*** (4.65)

 

BIG4

1.15 (1.06)

−17.56*** (−9.27)

0.24 (0.02)

−16.51*** (−7.80)

 

INV

1.11 (0.81)

−0.73 (−0.17)

0.66 (0.48)

2.02 (0.74)

 

AGE

−0.22*** (−2.91)

−0.39*** (−2.99)

−0.12 (−1.62)

−0.45*** (−3.61)

 

Industry MBR

0.17 (0.69)

−0.20 (−0.33)

−0.11 (−0.34)

−0.34 (−0.68)

 

# of Obs.

153

51

153

  

Pseudo R2

30.50%

33.91%

32.20%

  
  1. This table presents the results of logistic regressions for firms with IC weaknesses. 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