data definitions csr lag size roa big4
Please read the instructions on the excel spreadsheet. 65 companies data
Use the data in the spreadsheet (columns J to N to run the following tests: | |
You should include all of your answers in one file and submit it to Blackboard. Your name should be in the filename and on the top of first page. | |
The spreadsheet has 10-K report and financial data for a sample of semiconductor firms for fiscal year 2016. | |
Data Definitions: | |
CSR= Corporate social responsibility reporting, CSR=1 if disclosing; 0 otherwise | |
LAG = number of days between 10-K filing date and fiscal year-end date | |
SIZE = natural log of total assets | |
ROA = earnings divided by total assets | |
Big4 = 1 for Big4 auditor; 0 otherwise | |
Requirement 1 | |
State the nul and alternative hypotheses that the means of ROA and Size are different from zero. | |
Requirement 2 | |
Use the data in the spreadsheet to test the hypotheses you stated in reqyirement 1. | |
Requirement 3 | |
Run the correlation between the variables and comment on the relationships between the variables. | |
Requirement 4 | |
Run a multivariate regression to examine if management decision to disclose CSR is a function of | |
ROA, SIZE, BIG4 | |
MODEL: CSR= A0 + A1(ROA) + A2(SIZE) + A3(BIG4) +e | |
Explain the results of the above model: | |
a. direction Positive or negative | |
b. whether the coefficient of every variable is statisticallt significant from zero. | |
c. the overall explanationatory power of the model (R-squared). |