Univariate Test Results Conclusions and Limitations

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4.3 Logit Analyses Results.

The results of logit analyses are summarized in Table 5 for each income -smoothing objective. In particular, the estimated model beta, the associated significance test results and the holdout accuracy rates of the model are reported. The logit model for Income from Operations and Profit before Tax as income- smoothing objectives are found to be insignificant with a p -value of 0.845 and 0.791. As can be seen from Table 5 Panel A, at significance level above 0.1 one -tailed test, only the variables for the industry sectors namely IND and PROP are significant p - values equals 0.095 and 0.081, respectively. The findings suggest the company in the hotel and property industry would tend to smooth their income more than the IndustrialCommercial industry. 2436 When Profit after Tax is the income smoothing objective, as can be seen from Table 5, Panel C, the resulting logit model is significant with p -value of 0.058. At significance level slightly above 0.05 and 0.1, the null hypotheses for H7 AUD and H1 NED can be rejected at p-value equals to 0.058 and 0.063 one-tailed test. All these findings are expected under the hypotheses tested in the study. The NED H1 variable has a negative sign for the coefficient. This indicates that companies with non-executive directors on the board and having one of the brand name auditors as their external auditor would hinder the management from involving in income smoothing activities. Finally, when Profit Attributable to Shareholders is the income smoothing objective, the resulting logit model is significant at 0.01 significance level, with a p -value of 0.008 please refer to Table 5, Panel D. At a significance level less than 0.01 with p - value of 0.003 one-tailed, the null hypothesis for AUD H7 can be rejected,. This is followed by OWN H9, with p-value equals to 0.03. At a one tailed-test, the null hypotheses for NED H1 and CCC H6 can also be rejected too, as their p -value are 0.09 and 0.083. All these findings are as predicted under the hypotheses tested in the