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 7

Regression results of the panel data models with HLIC.

Model (3)		Model (4)
Independent Variables	Coefficient	Independent variables	Coefficient
𝐶	−0.028 (−1.151)	𝐶	16.332*** (2.760)
DCFO	0.004 (0.881)	ΔNI𝑡−1	−0.854* (−1.912)
CFO	−0.878*** (−34.090)	DΔNI𝑡−1	−0.777*** (−4.768)
DCFO∗CFO	−0.156*** (−6.019)	DΔNI𝑡−1∗ΔNI𝑡−1	−2.422 (−0.231)
HLIC	−0.008*** (−2.853)	HLIC	−0.325** (−2.155)
DCFO∗HLIC	−0.038*** (−3.570)	DΔNI𝑡−1∗HLIC	1.016** (2.068)
CFO∗HLIC	0.101*** (3.929)	ΔNI𝑡−1∗HLIC	−0.735 (−0.389)
DCFO∗CFO∗HLIC	−0.824*** (−31.948)	DΔNI𝑡−1∗ΔNI𝑡−1∗HLIC	5.511 (0.535)
STR	0.060 (1.563)	STR	−1.554 (−0.398)
LEV	−0.036** (−2.444)	LEV	2.807* (1.943)
SIZE	0.005** (2.601)	SIZE	−1.587*** (−2.990)
Adj_𝑅^2	0.891	Adj_𝑅^2	0.887

∗,∗∗,∗∗∗Denote significant differences at the 10 percent, 5 percent, and 1 percent level.