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

Table 9

Further analysis: based on text readability.

Variable	Panel A: VIOL		Panel B: VIOLN
	High readability	Low readability	High readability	Low readability
TONE	−0.910; (−2.62)	−0.399; (−1.06)	−0.617; (−3.25)	−0.299; (−1.59)
Control variable	Included	Included	Included	Included
INDU/YEAR	Included	Included	Included	Included
Intercept	2.270; (2.89)	2.409; (3.04)	2.324; (5.29)	2.331; (5.78)
P value of group difference	0.080		0.130
N	3,120	3,090	3,105	3,105
Pseudo R^2/Adj R^2	0.103	0.135	0.105	0.113

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