Audit Committee Disclosure Tone and Corporate Violations in China: Textual Analysis

Table 10

Mediation effect test: internal control system.

Path A (no mediation factor test)
Variable	VIOL	VIOLN
TONE	−0.673; (−2.60)	−0.483; (−3.40)
N	5,757	5,757
Pseudo R^2/adj R^2	0.110	0.103
Path B (mediation factor test)
Variable	Internal control	Internal control
TONE	1.442; (6.03)	1.442; (6.03)
N	5,757	5,757
Adj R^2	0.197	0.197
Path C (includes mediation factor test)
Variable	VIOL	VIOLN
TONE	−0.502; (−1.92)	−0.341; (−2.49)
Internal control	−0.090; (−7.14)	−0.091; (−11.74)
N	5,757	5,757
Pseudo R^2/adj R^2	0.120	0.124
Sobel Z	−0.042	−0.139
P value of Sobel Z	(0.001)	(0.001)

Notes: , , and indicate statistically significant at the 10%, 5%, and 1% levels, respectively (two-tailed). t-values are in parentheses. The robustness test only lists the regression results of the main variables and does not report the control variables.