Table 5

Weighted least squares

Dependent variable = ETR1
(1)(2)(3)(4)
Financial_D−0.009***   
(−2.904)   
Financial_Ratio −0.031**  
 (−2.347)  
RegulatoryFinancial  0.005 
  (0.247) 
NonregulatoryFinancial  −0.010*** 
  (−3.168) 
RegulatoryFinancial_Ratio   0.013
   (0.179)
NonregulatoryFinancial_Ratio   −0.034**
   (−2.102)
SOE0.0030.0030.0020.003
(0.652)(0.771)(0.618)(0.789)
Size0.012***0.011***0.012***0.011***
(7.590)(7.442)(7.594)(7.440)
Age−0.000−0.000−0.000−0.000
(−0.213)(−0.080)(−0.228)(−0.124)
Tangibility0.0280.0280.0280.028
(1.562)(1.569)(1.590)(1.580)
Lev0.028***0.028***0.028***0.028***
(2.844)(2.878)(2.828)(2.862)
RD−0.679***−0.685***−0.680***−0.679***
(−6.550)(−6.605)(−6.577)(−6.551)
ROA0.150***0.150***0.149***0.150***
(5.049)(5.053)(5.034)(5.072)
Growth0.013***0.013***0.013***0.013***
(5.006)(4.964)(5.003)(4.985)
Duality0.0020.0020.0020.002
(0.466)(0.482)(0.459)(0.477)
Independence0.045*0.0450.045*0.045*
(1.646)(1.639)(1.654)(1.649)
Female0.028*0.028*0.028*0.028*
(1.858)(1.871)(1.862)(1.875)
Loss−0.018**−0.018**−0.018**−0.018**
(−2.052)(−2.070)(−2.049)(−2.059)
TotalAccruals−0.011−0.012−0.011−0.012
(−0.561)(−0.593)(−0.558)(−0.600)
TMT_Age−0.020−0.019−0.019−0.018
(−0.948)(−0.923)(−0.926)(−0.875)
TMT_Foreign0.0200.0210.0200.020
(1.334)(1.358)(1.335)(1.324)
TMT_Academic0.0060.0060.0060.006
(0.593)(0.603)(0.570)(0.563)
_cons−0.182**−0.181**−0.184**−0.185**
(−2.144)(−2.121)(−2.166)(−2.165)
Year fixed effects?YesYesYesYes
Industry fixed effects?YesYesYesYes
Province fixed effects?YesYesYesYes
SEs. Clustered atFirm, YearFirm, YearFirm, YearFirm, Year
No. of obs18,25318,25318,25318,253
Adj. R-square0.0560.0560.0560.055

Note(s): This table presents the weighted least squares estimation results examining the relationship between managerial financial experience and corporate tax aggressiveness. All independent variables are lagged by one year except for Growth and Loss. Detailed variable definitions can be found in Table A1 of the Appendix section. Statistical significance is indicated by ***, **, and * corresponding to the 1%, 5%, and 10% levels, respectively

Source(s): Authors’ own work

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