Table 6 Military connection and earnings management: Role of audit quality.

AUQ

0.9637***

-0.0423**

-0.7305***

(-0.1662)

(-0.0225)

(-0.2747)

MCON*AUQ β₃

-0.4970**

-0.2622**

-0.3266***

(-0.0475)

(-0.1384)

(-0.1651)

FSZ

0.2823***

0.1088

0.0291***

0.1625***

0.3258***

0.1691***

(-0.0949)

(-0.103)

(-0.01336)

(-0.0406)

(-0.0352)

(-0.0334)

LEV

0.6280***

0.5542***

-0.0517***

-0.2309***

0.0702***

-0.2251***

(-0.2154)

(-0.162)

(-0.0256)

(-0.0638)

(-0.0292)

(-0.0526)

FTY

-0.054

-0.0263

0.0216***

0.0124***

0.4437***

0.0107***

(-0.0377)

(-0.0247)

(-0.0045)

(-0.0097)

(-0.2169)

(-0.008)

FAG

-0.0882***

-0.0272***

0.0450***

-0.0322***

-0.0069

-0.0100***

(-0.0238)

(-0.011)

(-0.0028)

(-0.0043)

(-0.009)

(-0.0036)

CAP

0.6717**

0.1087

0.0224

-0.0383

0.005

-0.0855***

(-0.3668)

(-0.1194)

(-0.0436)

(-0.0471)

(-0.0347)

(-0.0387)

Constant

1.2123***

2.083

-0.4464

5.1756***

1.3272

4.8086***

(-0.1747)

(-5.9936)

(-0.4963)

(-2.3628)

(-0.8947)

(-1.945)

Obs.

2640

2640

2640

2640

2640

2640

Years

13

13

13

13

13

13

No of Firms

240

240

240

240

240

240

Firm-FE

Yes

Yes

Yes

Yes

Yes

Yes

Time FE

Yes

Yes

Yes

Yes

Yes

Yes

AR (1)

-2.71

-4.34

-1.61

-4.35

-6.65

-2.46

(-0.087)

(0.000) ***

(0.000) ***

(0.000) ***

(0.000) ***

(0.000) ***

AR (2)

7.88

-2.8

3.88

-5.44

-9.62

-5.66

(-0.379)

(-0.172)

(-0.107)

(-0.151)

(-0.391)

(-0.509)

Hansen Test

2.92

3.36

2.05

6.68

10.317

8.45

(-0.713)

(-0.948)

(-0.915)

(-0.671)

(-0.317)

(-0.489)

Wald Test

18.8

17.53

13.34

17.72

22.911

20.51

(0.000) ***

(0.000) ***

(0.000)***

(0.000) ***

(0.000) ***

(0.039) **

H₀: β₁ = (β₁ + β₃)

-0.7120***

-0.3707***

-0.4686***

(-0.1245)

(-0.1916)

(-0.2354)