臺大管理論叢 NTU Management Review VOL.30 NO.2

107 NTU Management Review Vol. 30 No. 2 Aug. 2020 Panel C. Real activities manipulation proxied by RM_DISX it Variable a Predicted Sign U.S. GAAP Observations IFRS Observations DA it RM_DISX it DA it RM_DISX it Parameter Estimate t -Statistic Parameter Estimate t -Statistic Parameter Estimate t -Statistic Parameter Estimate t -Statistic Intercept ? 0.313 2.133** -0.096 -2.014** -0.351 -4.103*** -0.085 -0.718 RM_DISX it ? -4.088 -5.515*** -3.429 -11.091*** DA it - -1.828 -10.126*** -1.347 -4.969*** BBATH it - -0.368 -5.774*** -0.332 -9.396*** -0.326 -8.877*** -0.137 -3.481*** SM_DISX it - -0.546 -5.531*** -0.263 -13.064*** -1.370 -13.780*** -0.767 -6.779*** DEBT it + 0.363 3.095*** 0.200 4.385*** -0.061 -0.982 0.001 0.021 ST_DEBT it + 0.310 3.446*** 0.345 7.894*** -0.146 -4.239*** 0.014 0.892 BIG it -/+ 0.121 1.543 0.016 0.602 -0.098 -3.754*** -0.003 -0.270 MV it ? -0.064 -4.767*** -0.060 -8.978*** 0.033 5.781*** 0.004 1.522 EARN it ? 0.671 4.212*** 0.306 6.788*** 0.496 4.685*** 0.213 4.470*** DA it-1 - -0.138 -1.285 0.001 0.024 LTGN it + 0.028 2.209** 0.005 0.406 MILL it ? 0.014 2.143** 0.481 7.149*** 0.482 6.731*** 0.090 3.348*** No. of firm-years 78 78 83 83 Adjusted- R 2 0.584 0.758 0.699 0.491 Hausman t -statistic -5.122*** -9.739*** -9.977*** -4.364*** Note: ***,**,* denote significance at the 0.01, 0.05, and 0.10 level, respectively. Note a : Variable definitions: RM it = represents the two real earnings management metrics, RM_PROD it and RM_DISX it , and the combined variable, RM_SUM it ; SMOOTH it = represents the proxy for “income smoothing” reporting, which is set equal to SM_PROD it , SM_DISX it , or SM_SUM it ; and MILL it = Inverse Mills Ratio in the Heckman two-stage regression model (Heckman, 1979). The ratio, calculated from the first-stage probit model, equals the probability density function divided by the cumulative density function. All other variables are defined in Table 2.