An Empirical Study on the Influence of Consolidated Financial Statement’s Amplification Effect on Audit Fees

Table 6

The impact of amplification effect on audit risk.

Variables	RISK1	RISK1	RISK2	RISK2
	(1)	(2)	(3)	(4)
MAGNIFICATION1	0.029^∗∗∗	0.026^∗∗∗	0.046^∗∗∗	0.040^∗∗∗
	(4.994)	(4.424)	(5.388)	(4.707)
SIZE	−0.005^∗∗∗	−0.005^∗∗∗	−0.006^∗∗∗	−0.005^∗∗∗
	(−11.503)	(−9.387)	(−10.217)	(−7.952)
TOBINQ	0.006^∗∗∗	0.007^∗∗∗	0.008^∗∗∗	0.009^∗∗∗
	(8.753)	(9.144)	(7.450)	(7.759)
INDRATIO	0.015^∗	0.018^∗∗	0.022^∗∗	0.026^∗∗
	(1.893)	(2.233)	(2.014)	(2.430)
AGE	0.000^∗∗∗	0.001^∗∗∗	0.001^∗∗∗	0.001^∗∗∗
	(4.952)	(5.830)	(6.045)	(7.126)
SOE	−0.000	−0.002	0.000	−0.002
	(−0.206)	(−1.544)	(0.234)	(−1.395)
BIG4	0.003^∗	0.002	0.002	0.001
	(1.700)	(1.348)	(1.158)	(0.484)
SINDEX	−0.000	−0.000	−0.000	0.000
	(−1.049)	(−0.381)	(−0.690)	(0.235)
Constant	0.120^∗∗∗	0.117^∗∗∗	0.130^∗∗∗	0.115^∗∗∗
	(11.712)	(9.343)	(10.276)	(7.420)
YEAR	No	Yes	No	Yes
INDUSTRY	No	Yes	No	Yes
N	26,311	26,311	26,311	26,311
Adj. R^2	0.071	0.089	0.082	0.101

Note. Cluster-adjusted t-values are in parentheses. ^∗∗∗, ^∗∗, and ^∗ indicate significance at the 1%, 5%, and 10% levels, respectively.