The Effect of Managerial Ability on Earnings Classification Shifting and Agency Cost of Iranian Listed Companies
Table 5
The relation between managerial ability and agency cost (H3) in Panel A and reestimates the first hypothesis using model (1) in Panel B.
Panel A
Panel B
Panel C
Dependent variable
Agency cost (AC)
REM
AEM
UCE
Variables
Coeff.
Coeff.
Coeff.
Coeff.
t-stat.
t-stat.
t-stat.
t-stat.
MA
−0.033
MA
−0.031
0.008
MA
0.016
−8.794
−2.274
1.191
1.360
UCE
0.053
ROA
−0.283
0.846
REM
−0.022
5.380
−7.657
46.10
−3.745
UCE∗MA
−0.041
OPCYLCE
−0.794
1.217
MA×REM
0.009
−3.798
−0.797
0.604
0.558
CFO
0.017
LEV
0.014
0.007
ROA
0.188
2.229
1.196
0.300
7.851
LEV
−0.001
HIGHNOA
−0.026
0.012
OPCYLCE
−8.150
−0.273
−6.347
1.525
−6.252
OPCYLCE
5.443
CFO
−0.918
−1.243
LEV
0.060
9.842
−70.287
−47.130
3.824
ROA
−0.094
C
0.026
0.196
HIGHNOA
0.033
−9.286
3.030
11.179
6.212
BIG
−0.007
CFO
0.296
−1.993
15.343
C
0.083
C
−0.082
16.97
−6.795
Year effect
Yes
Yes
Yes
Yes
Industry effect
Yes
Yes
Yes
Yes
Adj. R2
0.60
0.78
0.78
0.42
D-W stat.
1.52
1.802
1.851
2.214
F-stat.
22.80
54.335
54.692
11.471
Prob.
0.000
0.000
0.000
0.000
Respectively, the symbols ,, and denote statistical significance at 0.1, 0.05, and 0.01. The results test classification shifting versus real earnings management in Panel C.
