Descriptive Statistics
Table 1 reports descriptive statistics of all variables used in our primary regression models. The mean and median value of the accrual-based conservatism measure (CON_ACC) is -0.020 and -0.013. Meanwhile the mean and median value of the market-based conservatism measure (CON_MKT) is -0.280 and -0.312. The average audit-firm tenure is 17.39 years and there are approximately 5 members on the audit committee.