Do audit firm reputation provide insight into financial reporting quality? Evidence from accrual and real management of listed companies in Vietnam

Figures & data

Table 1. Descriptive statistics

	Mean	sd	p25	p50	p75
aem	−.0309474	.2534114	−.1789518	−.0682298	.0631724
rem	−.0141462	.5524772	−.1343598	−.0113324	.1228763
big4	.3379473	.4730904	0	0	1
size_mcap	27.31192	1.634689	26.13447	27.07937	28.20763
dsales	.4838707	2.511641	−.1602774	.0563945	.2497075
lev	.4856813	.2091321	.3256146	.5059891	.6514512
lage	2.504953	.5063341	2.197225	2.484907	2.772589
roa	.1148925	.3689759	.0026939	.0162197	.0656905
mb	.9821771	1.617069	.2651463	.5579066	1.073022
cashholding	.0383853	.0403896	.0113473	.0250652	.0507768

Table 2. Correlation matrix

Variables	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
(1) big4	1.000
(2) size_mcap	0.474	1.000
(3) dsales	0.010	−0.003	1.000
(4) lev	0.023	−0.007	−0.039	1.000
(5) lage	0.011	−0.028	−0.031	0.007	1.000
(6) roa	−0.091	−0.178	0.021	−0.113	−0.069	1.000
(7) mb	0.032	0.289	0.001	−0.339	−0.096	0.073	1.000
(8) cashholding	−0.002	−0.029	0.020	−0.034	0.030	0.021	0.099	1.000

Table 3. Regression results with Big 4

	(1)	(2)	(3)	(4)
	aem	aem	rem	rem
big4	−0.038**	−0.041**	−0.076**	−0.070***
	(−2.711)	(−2.322)	(−2.408)	(−2.996)
size_mcap		0.008		−0.015
		(0.517)		(−0.385)
dsales		0.000		−0.000
		(1.091)		(−0.339)
lev		−0.417***		0.162
		(−5.709)		(1.390)
lage		−0.034		0.179
		(−0.447)		(0.881)
roa		0.002***		−0.007***
		(4.796)		(−3.449)
mb		−0.000***		−0.001***
		(−11.462)		(−4.178)
cashholding		−0.284**		0.412
		(−2.604)		(1.109)
N	2563	2495	2516	2489
adj. R-sq	0.505	0.552	0.333	0.342

Notes: t statistics in parentheses. *p < 0.10, **p < 0.05 and ***p< 0.01.

Table 4. Regression results pre change in Big 4 auditors

	(1)	(2)	(3)	(4)
	aem	aem	rem	rem
big4n2	0.014	0.009	0.057**	0.050**
	(0.650)	(0.414)	(2.885)	(2.282)
big4n1	0.031	0.023	0.119**	0.107**
	(0.719)	(0.542)	(2.633)	(2.463)
big4		−0.043***		−0.057***
		(−3.065)		(−2.985)
size_mcap	0.007	0.010	−0.007	−0.002
	(0.463)	(0.678)	(−0.161)	(−0.060)
dsales	0.001	0.001	−0.010**	−0.010**
	(1.367)	(1.383)	(−2.209)	(−2.179)
lev	−0.431***	−0.430***	0.125	0.126
	(−5.344)	(−5.359)	(1.091)	(1.111)
lage	−0.022	−0.018	0.093	0.100
	(−0.284)	(−0.222)	(0.621)	(0.672)
roa	−0.005	−0.005	0.071	0.071
	(−0.206)	(−0.212)	(0.654)	(0.652)
mb	−0.002	−0.003	−0.020	−0.021
	(−0.374)	(−0.491)	(−1.404)	(−1.434)
cashholding	−0.271*	−0.282*	0.474	0.458
	(−1.917)	(−2.067)	(1.053)	(1.026)
N	2495	2495	2489	2489
adj. R-sq	0.550	0.551	0.346	0.346

Notes: t statistics in parentheses. *p < 0.10, **p < 0.05 and ***p < 0.01.

Table 5. Regression results post change in Big 4 auditors

	(1)	(2)	(3)	(4)
	aem	aem	rem	rem
big4		−0.045**		−0.072***
		(−2.783)		(−3.342)
big4p1	−0.030	−0.025	0.013	0.021
	(−1.432)	(−1.244)	(0.494)	(0.780)
big4p2	−0.000	0.007	−0.057	−0.046
	(−0.014)	(0.436)	(−1.469)	(−1.107)
size_mcap	0.007	0.010	−0.006	−0.001
	(0.472)	(0.685)	(−0.160)	(−0.033)
dsales	0.001	0.001	−0.010**	−0.010**
	(1.383)	(1.411)	(−2.185)	(−2.146)
lev	−0.431***	−0.431***	0.139	0.140
	(−5.365)	(−5.359)	(1.206)	(1.227)
lage	−0.022	−0.018	0.095	0.103
	(−0.276)	(−0.220)	(0.627)	(0.688)
roa	−0.005	−0.005	0.069	0.069
	(−0.209)	(−0.214)	(0.637)	(0.636)
mb	−0.003	−0.003	−0.021	−0.021
	(−0.427)	(−0.537)	(−1.457)	(−1.484)
cashholding	−0.268*	−0.281*	0.488	0.467
	(−1.887)	(−2.052)	(1.099)	(1.062)
N	2495	2495	2489	2489
adj. R-sq	0.550	0.551	0.345	0.345

Notes: t statistics in parentheses. *p < 0.10, **p < 0.05 and ***p < 0.01.

Table 6. Robustness check using different measures of earning management

	(1)	(2)	(3)	(4)
	aem	aem	aem	aem
big4	−0.039**	−0.052***	−0.038**	−0.046**
	(−2.753)	(−2.955)	(−2.525)	(−2.610)
size_mcap		0.030		0.025
		(1.716)		(1.442)
dsales		0.001		0.001
		(0.709)		(0.585)
lev		−0.216**		−0.243***
		(−2.878)		(−3.633)
lage		−0.041		−0.041
		(−0.507)		(−0.498)
roa		0.000		0.001
		(0.007)		(0.046)
mb		−0.003		−0.003
		(−0.510)		(−0.715)
cashholding		−0.286*		−0.293*
		(−2.065)		(−2.131)
N	2548	2481	2501	2475
adj. R-sq	0.436	0.467	0.461	0.472

Notes: t statistics in parentheses. *p < 0.10, **p < 0.05 and ***p < 0.01