Question

A regression analysis was carried out to predict a firm's reputation (defined on a scale called the Carter-Manaster reputation ranking) on the basis of unexpected accruals, auditor quality, return on investment, and expenditure on research and development. The parameter estimates (and standard errors, in parentheses), in the order these predictor variables are listed, are -2.0775(0.4111), -0.1116(0.2156), 0.4192(0.2357), and 0.0328(0.0155). The number of observations was 487, and the R2 was 36.51%. Interpret these findings.


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  • CreatedJune 03, 2015
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