. 2023 Apr 5;9(4):e15171. doi: 10.1016/j.heliyon.2023.e15171

Table 5.

Results from estimates of discretionary accruals, operating cash-flows, and expenses.

Regressors	$\frac{{T A}_{i, t}}{{A s s e t s}_{i, t - 1}}$ (2)		$\frac{{C F O}_{i . t}}{{A s s e t s}_{i . t - 1}}$ (4)		$\frac{{EXP}_{i . t}}{{A s s e t s}_{i . t - 1}}$ (6)		$\frac{{T A}_{i, t}}{{A s s e t s}_{i, t - 1}}$ (2)		$\frac{{C F O}_{i . t}}{{A s s e t s}_{i . t - 1}}$ (4)		$\frac{{EXP}_{i . t}}{{A s s e t s}_{i . t - 1}}$ (6)
Regressors	parameter	t-value	parameter	t-value	parameter	t-value	parameter	t-value	parameter	t-value	parameter	t-value
*Panel A. Results from French companies*							*Panel B. Results from German companies*
$\frac{1}{{A s s e t s}_{i, t - 1}}$	8.4106	0.683	−32.8478	−0.421	766.44	5.36 (***)	−10.4328	−1.34	−115.442	−2.3 (**)	483.711	2.95 (***)
$\frac{{Δ S a l e s}_{i, t}}{{A s s e t s}_{i, t - 1}}$	−0.0091	−3.59 (***)	0.0566	3.43 (***)			−0.0072	−2.94 (***)	0.0830	4.88 (***)
$\frac{{T D A}_{i, t}}{{A s s e t s}_{i, t - 1}}$	−0.0177	−3.50 (***)					−0.0419	−7.83 (***)
${R o A}_{i, t}$	0.0558	8.42 (***)					0.0369	4.59 (***)
$\frac{{S a l e s}_{i, t}}{{A s s e t s}_{i, t - 1}}$			0.0930	7.01 (***)					0.0622	3.35 (***)
$\frac{{S a l e s}_{i, t - 1}}{{A s s e t s}_{i, t - 1}}$					0.5591	14.30 (***)					0.6545	10.9 (***)
Individual effects	Yes		Yes		Yes		Yes		Yes		Yes
Temporary effects	Yes		Yes		Yes		Yes		Yes		Yes
Hausman	87.2512	(0.000)	20.1548	(0.000)	194.8127	(0.000)	11.4852	(0.021)	35.4571	(0.000)	244.0742	(0.000)
AR (1) residuals	0.704	(0.459)	1.166	(0.243)	1.935	(0.053)	0.910	(0.363)	1.183	(0.237)	1.306	(0.192)
AR (2) residuals	0.592	(0.554)	1.082	(0.279)	0.399	(0.690)	0.894	(0.371)	1.053	(0.292)	0.686	(0.493)
adjusted R²	75.02%		77,30%		87,19%		75.78%		69.53%		91.07%
*Panel C. Results from Italian companies*							*Panel D. Results from Spanish companies*
$\frac{1}{{A s s e t s}_{i, t - 1}}$	7.0441	1.32	−44.1474	−1.64	232.073	2.39 (**)	−16.9974	−2.26 (**)	−56.5195	−0.912	380.061	1.96 (*)
$\frac{{Δ S a l e s}_{i, t}}{{A s s e t s}_{i, t - 1}}$	−0.0171	−4.16 (***)	0.0391	2.26 (**)			0.0011	0.231	0.1218	3.74 (***)
$\frac{{T D A}_{i, t}}{{A s s e t s}_{i, t - 1}}$	−0.0432	−4.95 (***)					−0.0357	−4.15 (***)
${R o A}_{i, t}$	0.1205	7.64 (***)					0.0229	1.98 (**)
$\frac{{S a l e s}_{i, t}}{{A s s e t s}_{i, t - 1}}$			0.0765	5.65 (***)					0.0917	4.22 (***)
$\frac{{S a l e s}_{i, t - 1}}{{A s s e t s}_{i, t - 1}}$					0.6241	9.22 (***)					0.5725	7.14 (***)
Individual effects	Yes		Yes		Yes		Yes		Yes		Yes
Temporary effects	Yes		Yes		Yes		Yes		Yes		Yes
Hausman	22.1348	(0.000)	21.2591	(0.000)	228.132	(0.000)	28.8745	(0.000)	29.1146	(0.000)	188.2586	(0.000)
AR (1) residuals	1.716	(0.086)	1.098	(0.272)	1.112	(0.266)	0.995	(0.340)	1.186	(0.236)	1.123	(0.262)
AR (2) residuals	0.517	(0.605)	0.990	(0.322)	0.453	(0.650)	0.201	(0.842)	1.006	(0.315)	0.991	(0.322)
adjusted R²	76.34%		69.66%		88.84%		87.63%		63.90%		92.95%

Note: This table shows the results of estimating discretionary accruals (according to equation (2)), operating cash flows (according to equation (4)) and operating expenses (according to equation (6)) for the French (Panel A), German (Panel B), Italian (Panel C) and Spanish (Panel D) companies. TA: Total accruals defined as income from continuing operation minus the cash flow from operations; CFO: Operating cash-flows; Sales: Revenue; EXP: Difference between operating revenues and operating income (EBIT); Assets: Total assets; ΔSales: Difference in revenue between two consecutive fiscal years or sales growth; TDA: Total depreciable assets; RoA: Return on Assets. Hausman test rejects the hypothesis on the consistency of the GLS estimation in all cases, the autocorrelation tests (AR(1) and AR(2)) show the absence of time dependence of the residuals and adjusted R2 indicates the explanatory power. (*), (**) and (***) indicate that the parameter is statistically significant at a confidence level of 10%, 5% and 1%, respectively.