The Effect of Managerial Ability on Earnings Classification Shifting and Agency Cost of Iranian Listed Companies
Table 4
The relation between managerial ability and earnings classification shifting (H1), and future performance and impact interaction its earnings management (H2).
Independent variable
UCE
Independent variable
ROAt+1
CFOt+1
Independent variable
ROAt+1
CFOt+1
Panel 1
Coeff.
Panel 2
Coeff.
Coeff.
Panel 3
Coeff.
Coeff.
t-stat.
t-stat.
t-stat.
t-stat.
t-stat.
Constant
−0.099
Constant
0.039
0.050
Constant
0.035
0.065
(-8.710)
(3.054)
(2.933)
(2.718)
(3.691)
MA
0.020
MA
0.046
0.074
MA
0.026
0.044
(2.286)
(2.836)
(3.374)
(2.642)
(3.282)
ROA
0.192
UCE
−0.020
−0.009
REM
−0.029
−0.072
(8.010)
(−3.386)
(−1.081)
−(1.683)
(−3.058)
OPCYLCE
−8.204
MA × UCE
0.032
0.055
MA × REM
0.041
0.0531
(−6.276)
(−1.541)
(-1.951)
(1.391)
(1.332)
LEV
0.059
ROA
0.346
0.186
ROA
0.368
0.174
(3.731)
(12.73)
(5.057)
(13.417)
(4.721)
HIGHNOA
0.032
OPCYLCE
1.677
1.574
OPCYLCE
1.380
1.388
(6.083)
(1.143)
(0.793)
(0.940)
(0.701)
CFO
0.330
LEV
0.029
0.091
LEV
0.032
0.093
(2.820)
(1.638)
(3.808)
(1.850)
(3.913)
HIGHNOA
0.001
−0.003
HIGHNOA
0.003
−0.001
(0.218)
(−0.472)
(0.587)
(−0.186)
CFO
0.075
0.024
CFO
0.135
−0.056
(3.659)
(0.874)
(4.678)
(−1.434)
Year effect
Yes
Year effect
Yes
Yes
Year effect
Yes
Yes
Industry effect
Yes
Industry effect
Yes
Yes
Industry effect
Yes
Yes
Adjusted R2
0.42
0.51
0.32
0.51
0.32
F-stat.
11.454
16.28
7.84
16.13
7.91
Prob. (F-stat.)
0.000
0.000
0.000
0.000
0.000
D-W stat.
1.73
1.81
1.86
1.89
1.91
Respectively, symbols ,, and denote statistical significance at 0.1, 0.05, and 0.01.
