Board characteristics and earnings management. Does firm size matter?

Figures & data

Table 1. Descriptive statistics for the research variables for the period 2011–2020

Variable	Obs	Mean	Std. Dev.	Min	Max
EM	792	−0.033	0.338	−1.016	0.977
BS	792	9.047	2.595	4.000	17.00
BI	792	0.792	0.123	0.231	1.000
BGD	792	0.231	0.145	0.000	0.667
BFE	792	0.657	0.180	0.200	1.000
FS	792	7.085	1.262	3.873	10.137
FA	792	4.102	0.545	2.303	5.167
ROA	792	0.059	0.099	−0.294	0.483

Table 2. Pairwise correlation

	EM	BS	BI	BG	BFE	FS	ROA	FA
EM	1.000
BS	0.486*	1.000
BI	−0.117*	−0.091*	1.000
BG	−0.352*	−0.239*	0.164*	1.000
BFE	−0.158*	−0.130*	0.256*	0.233*	1.000
FS	0.113*	0.202*	−0.100*	−0.071*	−0.064	1.000
ROA	0.156*	−0.046	−0.018	0.032	−0.049	0.009	1.000
FA	0.099*	−0.098*	0.061	0.067	0.072*	−0.102*	0.115*	1.000
*ρ < 0.05

Table 3. Regression results for system generalized method of moments

	Model 1	Model 2	Model 3	Model 4	Model 5	Model 6
Constant	−.180(0.571)	−.885(0.615)	−.826(0.612)	−.632(0.615)	−.534(0.612)	−.575(0.620)
Controls
FP	.373(0.090)**	.369(0.090)**	.355(0.090)**	.330(0.090)**	.330(0.090)**	.330(0.090)**
FA	.338(0.311)	.415(0.312)	.341(0.312)	.310(0.310)	.357(0.309)	.371(0.310)
Board characteristics variables
BS	.407(0.158)**	.402(0.157)**	.388(0.156)**	.390(0.156)**	.333(0.156)**	.338(0.157)**
BI	−.424(0.141)**	−.396(0.142)**	−.385(0.141)**	−.493(0.148)**	−.508(0.148)**	−.511(0.148)**
BGD	−.881(0.128)**	−.868(0.128)**	−.867(0.127)**	−.871(0.127)**	−.866(0.126)**	−.860(0.126)**
BFE	−.463(0.123)**	−.486(0.123)**	−.457(0.123)**	−.447(0.123)**	−.470(0.122)**	−.459(0.123)**
Moderating variable
FS		.079(0.025)**	.086(0.025)**	.078(0.255)**	.064(0.026)**	.065(0.026)**
Interactions
BS*FS			−.249(0.114)**	−.320(0.117)**	−.343(0.117)**	−.355(.119)**
BI*FS				.352(0.157)**	.376(0.156)**	.382(0.157)**
BGD*FS					.272(0.112)**	.281(0.114)**
BFE*FS						−.059(0.096)
Post estimation tests
AR(2)	0.547	0.587	0.806	0.835	0.844	0.806
Sargan	0.068	0.073	0.152	0.159	0.152	0.139
Hansen	0.258	0.292	0.360	0.356	0.355	0.356
Observations	704	704	704	704	704	704
Groups	88	88	88	88	88	88
Wald chi2	158.14	168.81	177.26	186.89	193.55	193.03
No instrument	42	43	44	45	46	47
** ρ < 0.05, standard errors in parentheses