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Table 1 Details and calculation methods of variables

From: Critical audit matters and stock price crash risk

Variable Symbol Details and calculation methods
Explained variable NCSKEW Negative coefficient of skewness of firm-specific weekly returns, see Eq. (2) for estimation method
DUVOL Down-to-up volatility of firm-specific weekly returns, see Eq.(3) for estimation method
Explanatory variable TREAT·YEAR The interactive term in the DID model
NumCAM The number of CAMs in one audit report
DumIdio Dummy variable, whether corporate-idiosyncratic CAMs are contained in one audit report
NumIdio The number of corporate-idiosyncratic CAMs in one audit report
Control variable Size Firm size, the natural log of a firm’s total assets
ABS_DA Firm transparency, the absolute value of discretionary accruals calculated by the modified Jones model
ROA Return on total assets, calculated as income before extraordinary items divided by total assets
Lev Firm financial leverage, calculated as total liabilities divided by total assets
Dturn Change of annual turnover rate, calculated as the difference between the annual turnover rate for this year and last year divided by the annual turnover rate for last year
StdW Standard deviation of firm-specific weekly return rates
MB book-to-market ratio
SOE Dummy variable, the nature of property right, equals 1 if ultimate controlling owner is the country
Top1 Stock share of the largest shareholder
Independent The proportion of independent directors in the board of directors
IND Industry fixed effect