In this regression, AUDITOR is the Big 5 indicator variable, SIZE is the log market value of equity, CAPINT is
the capital intensity measured by long-term assets over total assets, INVREC is the inventory and receivables
over total assets, LEVE is the total liabilities over total assets, LOSS is the loss indicator variable, ROA is return
on assets, and ISSUE is the dummy variable for long-term debt issuance of more than 20 percent of existing
long-term debt for the past two years. Using the results of this first-stage regression, we compute the inverse
Mills ratio. In the first stage regression, all independent variables except ISSUE are significant at 1 percent level
and pseudo-R2 of the regression model is 0.2660.