F test 0 is significantcoefficient positive is high market to book is positive those companies who have growth opportunities manipulate earningsleverage is positive.. so.. same. 2008-09 companies do more manipulation.. if under pressure they manipulated more (financial crisis)industries.. 1-12. One industry has higher manipulation (8)CEO duality and Indeoendance59000 observations34% CEOS are president of the board2/3 people have separation 1/3 people combine chairmanshipthe independance is 48% on avginto our sample 48% are idnependant directors.Now we are ready to work> create a dummy variable. 1) CEO DUALITY 2) INDEPENDANCEif independance is >50% and one if its below 50%Simple T test runresult for t test for ceo dualitycheck leveks of earning management.. 7.3%vs 6.9% this different which is statistically signifcant.. Pr(T < t) = 0.0002P value is The probability taht we are wrong is low if the p value is 0.1 or 0.05 or 0.01. SOX ACTif year >2003 we call it 1do some t testunivariate analysisintensity of EM before and after the SOXbefore its higher and after its lower and the result is significant. DOUBLE LISTINGRun the regressionSOX decreased EM but the difference is statistically isignificant.. P>t is 0.815 ( too high)