*7.4. Univariate Analysis*

Table 3 presents the correlation matrix showing the relationship between each of the independent variables and the dependent variable. The dependent variable financial risk disclosure index is strongly related to auditor type and firm size, and moderately correlated to financial performance (ROA), but it is weakly related to other independent variables. All possible correlations among the independent variables are given in the correlation matrix. Our standard is to look for a correlation that exceeds an absolute value of ±70. None of the independent variables are strongly correlated with each other. This indicates that multi-collinearity is not likely.

**Table 3.** Correlation matrix. DR—disclosure risk; CEM—cement industry; TAN—tannery industry; PC—Pharmaceuticals and Chemical industry; ENG—Engineering industry; FP—fuel and power industry and other variables as defined previously.


\*\* Correlation is significant at the 0.01 level (2-tailed). \* Correlation is significant at the 0.05 level (2-tailed).
