We estimate the accounting quality models summarized
in the preceding section for each of the 12 accounting
standard events. For each accounting quality metric, we
determine the relevant measure that captures the effect
of each the accounting standard variables: (1) the change
in the variance of DNI*, (2) the change in Spearman correlation
coefficient between accruals and cash flows, and (3)
the incremental effect on the cash flow coefficient. These
statistics represent the shift in the accounting quality metric
following the implementation of the accounting standard
after controlling for other known determinants