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NTU Management Review Vol. 35 No. 2 Oct. 2025

Table 7 (continued) Assessing Parallel Trend Assumptions

Panel B: Significance Tests of Sum of Coefficients
Coef. t-stat p-value Coef. t-stat p-value
UK + UK×POST -0.313 -1.06 0.290
UK + UK×YEAR_0506 0.652 1.47 0.144
UK + UK×YEAR_0708 0.145 0.38 0.707
UK + UK×YEAR_0910 -0.037 -0.07 0.943
UK + UK×YEAR_1112 -1.056 -2.59 0.010
UK + UK×YEAR_1314 -0.550 -1.89 0.061
Notes: This table presents the results of the multivariate analysis of parallel trend assumptions.
Panel A presents the regression results, and Panel B details whether the sums of the
coefficients of interest are significant. DISPERSION is the dispersion of analyst forecasts,
measured as the standard deviation of individual analysts’ forecasts scaled by the absolute
value of the mean EPS forecast. POST equals one after 2005 and zero otherwise. PRE is
an indicator variable that equals one two years before IFRS adoption and zero otherwise. In
Column (2), we replace POST with a vector of time-period indicator variables: YEAR_0506,
YEAR_0708, YEAR_0910, YEAR_1112, and YEAR_1314. YEAR_0506 equals one for the
period 2005-2006 and zero otherwise; all other time-period indicator variables are defined
accordingly. The t-statistics are calculated using robust standard errors clustered at the firm
level.

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