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

The Benefits of Disclosing Internal Control Weaknesses: Evidence from Taiwanese Banks 198 Table 7 Additional Analysis 1 Inclusion of Internal Audit Quality Variables Panel A: The result of model (1) Coef. Std. Err. z p > z IAUBOD -0.299 1.65 -0.18 0.857 ln(IAUNB) 0.454 0.611 0.74 0.458 IAUMEET 1.444 1.006 1.44 0.151 Panel B: The result of model (2) Coef. Std. Err. t p > t # ICW 0.013 0.005 2.630 0.011 BV 0.546 0.089 6.110 0.000 NI 0.686 0.412 1.660 0.061 SIZE 0.005 0.002 1.920 0.040 DIV_ASSET 0.051 0.020 2.600 0.012 DIV_REV -0.006 0.012 -0.470 0.324 ZSCORE -0.007 0.003 -2.700 0.010 IMR 0.006 0.001 3.920 0.001 _cons -0.048 0.040 -1.210 0.125 Number of obs 141 F (8, 12) 33.14 Prob > F 0.000 R-squared 0.604 Root MSE 0.025 Note: See Appendix for variable definitions. # P -values are presented in one-tailed. 4.4.2 Effect of Merger & Acquisition Based on prior studies that use Taiwanese banks as the sample firms, some studies do not deal with the merger and acquisition (M&A) issue in the sample firms, such as Liu (2008). This is somewhat reasonable because in the context of the current study, if a bank is merged with others, its market value will no longer be available, and it would not be included in our sample. If it acquires other banks, the potential effect of M&A may emerge. In that case, another new variable will be added, coded as 1 if the bank has engaged in M&A in the past two years to our original model, and the analysis will be repeated. Huang, Lin, and Chih (2017) suggest another way, which is to remove the observation that has engaged in M&A in the past two years. Both robustness checks yield similar results with the main test of this study.