La moral y los valores vistos por los niños y adolescentes

The secondary data was analysed using Descriptive Statistics of Index Disclosure and Multiple Regression Analysis. There were two regression analyses employed to analyse the secondary data: fixed effect model and random effect model. The fixed effect model took into account the behavioural pattern of the firms/enterprises; while the random effect did not consider the behavioural pattern of the firm/enterprises. The models specification is shown in sub-section 3.7.4.

3.7.3 Definition of Variables of the Study

The variables identified in this study include:

a) Dependent Variables

The dependent variables of the research are the overall disclosure index of all the 18 enterprises under study (equation 4) and the disclosure indices of each of the enterprises (equation 3). It is the ratio of the actual total disclosure scores to the total expected

mandatory disclosure scores by all the 18 enterprises, computed with the aid of disclosure index template and Microsoft Excel 2010 version.

b) Independent Variables

These are the explanatory variables used for the test of hypotheses1-6. These include:

firm size, leverage, liquidity, audit firm size, professional qualification and firm effects.

These variables are obtained from each enterprise‟s annual reports for fiscal years 2002 – 2013. The independent variables are divided into two categories, the quantitative variables and the qualitative variables.

Quantitative Independent Variables

These variables are in form of continuous or discrete measured at least on the interval scale. These variables are represented by values obtained from the analysis of financial statements using Attributes Score Table which employed Microsoft Excel 2010 version. They include:

a) Firm size- This was represented by Total Book Value of Fixed Assets plus Total Current Assets plus total investments of the enterprise as presented in the annual reports of the enterprise. This was measured mathematically as: Total Assets = Book Value of Fixed Assets at end of year + Total Net Current Assets + Investments.

b) Leverage- This was represented by the Gearing Ratio (Total Long Term Liabilities divided by Total Fixed Assets). Total Fixed Assets were defined as Total Book Value of Fixed Assets and Investment as presented in the annual reports of the enterprise.

c) Liquidity- This was represented by the Current Ratio (defined as Current assets divided by Current Liabilities) as presented in the annual reports of the enterprise.

Qualitative Independent Variables

These variables are qualitative and were in form of discrete data. They were the dummy variables of the study. They include:

a) Audit firm size- This was represented by big audit firm or small audit firm. Big audit firm was defined as an audit firm with international connection, that is, at least one of the audit managers was also an audit partner of a foreign audit firm. Big audit firm took the dummy value “1”. Local (small) audit firm was defined as an audit firm without international connection. Local audit firm took the dummy value “0”.

b) Professional Qualification- This was represented by Chartered Accountant or not a chartered accountant. Chartered accountant was defined as a member of any of the recognized accounting bodies by the Nigeria Government. Non-chartered accountant was defined as an accountant who was not a member of any of the recognized accounting bodies by the Nigeria Government. Chartered accountant took the dummy variable value“1” and not a chartered accountant took the dummy variable value“0”.

c) Firm Effects- These are special features of a firm which include managerial style, managerial philosophy, type of market, process of production. Firm effects were represented by the individual enterprise in form of dummy variable value “1”, because in the least square dummy variable model, it allows for heterogeneity among subjects by allowing each entity to have its own unique intercept value, due to the special features of each enterprise.

Table 5: The Variables of the Study

Variable Description of independent and dependent variables

Proxy Hypothesis Code A prior Expectati ons (+ or -) Firm Size Total book value of fixed assets

plus total current assets of the enterprise as presented in the annual reports of the enterprise.

This is measured mathematically as: Total Assets = Book value of

fixed assets + Current assets.

Total assets or Log Total Assets

H1 S +

Leverage The gearing ratio, given as total long term liabilities divided by

long term investment.

Gearing ratio H2 Le +

Liquidity The current ratio, define as current liabilities divided by

current assets

Current ratio H3 L +

Audit Firm Size

Big audit firm with international connection or local audit firm

Big audit firm (1) or Small Audit firm (0)

H4 A +

Professional Qualification

Professional or non-professional accountant

Professional (1) non- professional (0)

H5 Q +

Firm effects Special features of enterprises. Dummy Variable 1 for each

H6 FE +

Overall disclosure Index

The addition of all the individual disclosure index of parastatals

Equation 3.2 For all the hypotheses and question 1

ODI

Enterprise disclosure index

The disclosure index of each

parastatal EDC = For all the

hypotheses and question 1

E

Source: Fieldwork, 2014

3.7.4 Model Specification