An Entropy Testing Model Research on the Quality of Internal Control and Accounting Conservatism: Empirical Evidence from the Financial Companies of China from 2007 to 2011

Table 5

Pearson correlation coefficients among the main variables⁵.

Variables	ΔNI𝑡	ΔNI𝑡−1	DΔNI𝑡−1	ICQ	HLIC
ACCRUAL	1	−0.041	0.211**	0.131	0.067	ΔNI𝑡
CFO	−0.948***	1	−0.114	0.053	−0.113	ΔNI𝑡−1
DCFO	0.220***	−0.211**	1	0.1	−0.056	DΔNI𝑡−1
ICQ	−0.03	0.072	0.008	1	−0.224***	ICQ
HLIC	0.1	1.22	−0.209**	−0.244***	1	HLIC
	ACCRUAL	CFO	DCFO	ICQ	HLIC

∗,∗∗,∗∗∗Denote significant differences at the 10 percent, 5 percent, and 1 percent levels, respectively, based on two-tailed tests.
⁵The Pearson correlation coefficients in left bottom are from accrual-based loss recognition model and the right bottom ones from the persistence of earnings changes model.