COMMONS DEED

-0.156
-0.141
-0.127
-0.113
-0.099
-0.085
-0.071
-0.057
-0.042
-0.028
-0.014
0.000
0.014
0.028
0.042
0.057
0.071
0.085
0.099
0.113
0.127
0.141
0.156
0.170
0.184
0.198
0.212
0.226
-0.137
-0.125
-0.112
-0.100
-0.087
-0.075
-0.062
-0.050
-0.037
-0.025
-0.012
0.000
0.012
0.025
0.037
0.050
0.062
0.075
0.087
0.100
0.112
0.125
0.137
0.149
0.162
0.174
0.187
0.199
TOURISMOS: AN INTERNATIONAL MULTIDISCIPLINARY JOURNAL OF TOURISM
Volume 6, Number 3, Winter 2011, pp. 13-36
UDC: 338.48+640(050)
Table 5 (Panels A and B) reports the relation between earnings
benchmarks and the presence of auditors in the financial statements. It is
noted that the discontinuity in net income (levels and changes) for nonaudited
firms is bigger than for audited-firms. This evidence can be
interpreted such as auditors provide quality to earnings.
Finally, Panels C and D (Table 5) present the relation between
earnings benchmarks and the presence of Big 4 auditors. It is noted that
Big 4 produce mixed results. As the discontinuity in net income decreases
under Big 4 auditors, the evidence using changes in net income is not as
evident. Further exam is required. Table 8 (annex) shows similar results
using the alternative interval.
Table 4 Frequency histograms (net income) and ownership
structure
Panel A: Net Income distribution (NI/AT t-1 )
Familiar
14.0%
Mixed
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
27