Table 12 Other robustness checks...

Table 12

Other robustness checks

Dependent variable =	An alternative measure for tax aggressiveness		Additional controls for cross-listing and internal control quality		Excluding the CEO from the TMT	Firm fixed effects model
	Cash_ETR	Cash_ETR	ETR1	ETR1	ETR1	ETR1	ETR1
	(1)	(2)	(3)	(4)	(5)	(6)	(7)
Financial_D	−0.001***		−0.009**
Financial_D	(−7.043)		(−2.526)
Financial_Ratio		−0.004***		−0.028**
Financial_Ratio		(−5.849)		(−2.043)
Financial_Ratio_ExcludingCEO					−0.030**
Financial_Ratio_ExcludingCEO					(−2.441)
Financial_Ratio						−0.049*
Financial_Ratio						(−1.741)
RegulatoryFinancial_Ratio							0.318
RegulatoryFinancial_Ratio							(1.387)
NonregulatoryFinancial_Ratio							−0.081***
NonregulatoryFinancial_Ratio							(−2.700)
Cross_Listing			0.019***	0.019***
Cross_Listing			(2.884)	(2.865)
InternalControl_Quality			0.007***	0.007***
InternalControl_Quality			(4.147)	(4.151)
SOE	0.002***	0.002***	0.004	0.005	0.004	−0.002	−0.002
SOE	(7.031)	(7.156)	(1.082)	(1.170)	(0.965)	(−0.091)	(−0.086)
Size	−0.000	−0.000*	0.011***	0.010***	0.011***	−0.000	−0.000
Size	(−1.544)	(−1.879)	(6.513)	(6.406)	(7.209)	(−0.081)	(−0.087)
Age	0.001***	0.001***	−0.003	−0.002	−0.000	0.000	−0.000
Age	(7.175)	(7.558)	(−1.007)	(−0.931)	(−0.074)	(0.004)	(−0.015)
Tangibility	0.001	0.001	0.023	0.024	0.028	−0.073**	−0.073**
Tangibility	(1.464)	(1.553)	(1.279)	(1.309)	(1.543)	(−2.023)	(−2.028)
Lev	0.006***	0.006***	0.034***	0.034***	0.031***	−0.066***	−0.065***
Lev	(9.622)	(9.617)	(3.271)	(3.270)	(3.166)	(−2.876)	(−2.870)
RD	−0.012**	−0.012**	−0.723***	−0.724***	−0.689***	0.031	0.032
RD	(−2.058)	(−2.096)	(−6.639)	(−6.645)	(−6.667)	(0.139)	(0.141)
ROA	−0.036***	−0.036***	0.126***	0.127***	0.140***	0.548***	0.549***
ROA	(−17.338)	(−17.234)	(4.094)	(4.142)	(4.732)	(9.008)	(9.016)
Growth	−0.003***	−0.003***	0.013***	0.013***	0.012***	0.016***	0.016***
Growth	(−20.549)	(−20.447)	(4.851)	(4.868)	(4.752)	(3.742)	(3.761)
Duality	0.000	0.000	0.002	0.002	0.001	0.008	0.008
Duality	(0.778)	(0.759)	(0.640)	(0.650)	(0.376)	(1.101)	(1.092)
Independence	0.000	0.000	0.045	0.045	0.037	0.055	0.055
Independence	(0.236)	(0.274)	(1.565)	(1.572)	(1.335)	(0.851)	(0.844)
Female	−0.002**	−0.002**	0.030*	0.031*	0.029*	0.047	0.046
Female	(−2.157)	(−2.120)	(1.928)	(1.955)	(1.917)	(1.139)	(1.125)
Loss	0.001**	0.001**	−0.014	−0.014	−0.021**	0.341***	0.341***
Loss	(2.204)	(2.228)	(−1.624)	(−1.613)	(−2.423)	(21.694)	(21.723)
TotalAccruals	0.003**	0.003**	−0.015	−0.016	−0.008	0.093***	0.093***
TotalAccruals	(2.087)	(2.065)	(−0.718)	(−0.742)	(−0.394)	(2.785)	(2.788)
TMT_Age	0.003**	0.003**	−0.012	−0.012	−0.015	−0.056	−0.056
TMT_Age	(2.555)	(2.568)	(−0.528)	(−0.524)	(−0.719)	(−1.015)	(−1.028)
TMT_Foreign	−0.001	−0.001	0.020	0.020	0.027*	−0.026	−0.025
TMT_Foreign	(−1.210)	(−1.218)	(1.262)	(1.266)	(1.710)	(−0.725)	(−0.709)
TMT_Academic	−0.003***	−0.003***	0.003	0.003	0.003	0.005	0.005
TMT_Academic	(−5.923)	(−5.880)	(0.272)	(0.282)	(0.335)	(0.149)	(0.145)
_cons	−0.009**	−0.009*	−0.233**	−0.232**	−0.190**	0.207	0.210
_cons	(−1.976)	(−1.938)	(−2.568)	(−2.540)	(−2.230)	(0.844)	(0.860)
Firm fixed effects?	No	No	No	No	No	Yes	Yes
Year fixed effects?	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Industry fixed effects?	Yes	Yes	Yes	Yes	Yes	No	No
Province fixed effects?	Yes	Yes	Yes	Yes	Yes	No	No
SEs. Clustered at	Firm, Year	Firm, Year	Firm, Year	Firm, Year	Firm, Year	Firm, Year	Firm, Year
No. of obs	18,880	18,880	17,008	17,008	18,023	17,077	17,077
Adj./Within R-square	0.160	0.159	0.059	0.059	0.058	0.097	0.098

Dependent variable =	An alternative measure for tax aggressiveness		Additional controls for cross-listing and internal control quality		Excluding the CEO from the TMT	Firm fixed effects model
	Cash_ETR	Cash_ETR	ETR1	ETR1	ETR1	ETR1	ETR1
	(1)	(2)	(3)	(4)	(5)	(6)	(7)
Financial_D	−0.001***		−0.009**
Financial_D	(−7.043)		(−2.526)
Financial_Ratio		−0.004***		−0.028**
Financial_Ratio		(−5.849)		(−2.043)
Financial_Ratio_ExcludingCEO					−0.030**
Financial_Ratio_ExcludingCEO					(−2.441)
Financial_Ratio						−0.049*
Financial_Ratio						(−1.741)
RegulatoryFinancial_Ratio							0.318
RegulatoryFinancial_Ratio							(1.387)
NonregulatoryFinancial_Ratio							−0.081***
NonregulatoryFinancial_Ratio							(−2.700)
Cross_Listing			0.019***	0.019***
Cross_Listing			(2.884)	(2.865)
InternalControl_Quality			0.007***	0.007***
InternalControl_Quality			(4.147)	(4.151)
SOE	0.002***	0.002***	0.004	0.005	0.004	−0.002	−0.002
SOE	(7.031)	(7.156)	(1.082)	(1.170)	(0.965)	(−0.091)	(−0.086)
Size	−0.000	−0.000*	0.011***	0.010***	0.011***	−0.000	−0.000
Size	(−1.544)	(−1.879)	(6.513)	(6.406)	(7.209)	(−0.081)	(−0.087)
Age	0.001***	0.001***	−0.003	−0.002	−0.000	0.000	−0.000
Age	(7.175)	(7.558)	(−1.007)	(−0.931)	(−0.074)	(0.004)	(−0.015)
Tangibility	0.001	0.001	0.023	0.024	0.028	−0.073**	−0.073**
Tangibility	(1.464)	(1.553)	(1.279)	(1.309)	(1.543)	(−2.023)	(−2.028)
Lev	0.006***	0.006***	0.034***	0.034***	0.031***	−0.066***	−0.065***
Lev	(9.622)	(9.617)	(3.271)	(3.270)	(3.166)	(−2.876)	(−2.870)
RD	−0.012**	−0.012**	−0.723***	−0.724***	−0.689***	0.031	0.032
RD	(−2.058)	(−2.096)	(−6.639)	(−6.645)	(−6.667)	(0.139)	(0.141)
ROA	−0.036***	−0.036***	0.126***	0.127***	0.140***	0.548***	0.549***
ROA	(−17.338)	(−17.234)	(4.094)	(4.142)	(4.732)	(9.008)	(9.016)
Growth	−0.003***	−0.003***	0.013***	0.013***	0.012***	0.016***	0.016***
Growth	(−20.549)	(−20.447)	(4.851)	(4.868)	(4.752)	(3.742)	(3.761)
Duality	0.000	0.000	0.002	0.002	0.001	0.008	0.008
Duality	(0.778)	(0.759)	(0.640)	(0.650)	(0.376)	(1.101)	(1.092)
Independence	0.000	0.000	0.045	0.045	0.037	0.055	0.055
Independence	(0.236)	(0.274)	(1.565)	(1.572)	(1.335)	(0.851)	(0.844)
Female	−0.002**	−0.002**	0.030*	0.031*	0.029*	0.047	0.046
Female	(−2.157)	(−2.120)	(1.928)	(1.955)	(1.917)	(1.139)	(1.125)
Loss	0.001**	0.001**	−0.014	−0.014	−0.021**	0.341***	0.341***
Loss	(2.204)	(2.228)	(−1.624)	(−1.613)	(−2.423)	(21.694)	(21.723)
TotalAccruals	0.003**	0.003**	−0.015	−0.016	−0.008	0.093***	0.093***
TotalAccruals	(2.087)	(2.065)	(−0.718)	(−0.742)	(−0.394)	(2.785)	(2.788)
TMT_Age	0.003**	0.003**	−0.012	−0.012	−0.015	−0.056	−0.056
TMT_Age	(2.555)	(2.568)	(−0.528)	(−0.524)	(−0.719)	(−1.015)	(−1.028)
TMT_Foreign	−0.001	−0.001	0.020	0.020	0.027*	−0.026	−0.025
TMT_Foreign	(−1.210)	(−1.218)	(1.262)	(1.266)	(1.710)	(−0.725)	(−0.709)
TMT_Academic	−0.003***	−0.003***	0.003	0.003	0.003	0.005	0.005
TMT_Academic	(−5.923)	(−5.880)	(0.272)	(0.282)	(0.335)	(0.149)	(0.145)
_cons	−0.009**	−0.009*	−0.233**	−0.232**	−0.190**	0.207	0.210
_cons	(−1.976)	(−1.938)	(−2.568)	(−2.540)	(−2.230)	(0.844)	(0.860)
Firm fixed effects?	No	No	No	No	No	Yes	Yes
Year fixed effects?	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Industry fixed effects?	Yes	Yes	Yes	Yes	Yes	No	No
Province fixed effects?	Yes	Yes	Yes	Yes	Yes	No	No
SEs. Clustered at	Firm, Year	Firm, Year	Firm, Year	Firm, Year	Firm, Year	Firm, Year	Firm, Year
No. of obs	18,880	18,880	17,008	17,008	18,023	17,077	17,077
Adj./Within R-square	0.160	0.159	0.059	0.059	0.058	0.097	0.098

Note(s): This table presents the results from a series of supplementary robustness tests. Models (1) and (2) utilize an alternative tax avoidance measure, Cash_ETR, defined as the ratio of cash taxes paid to pre-tax accounting income net of special items. In Models (3) and (4), Cross_Listing is introduced as a binary indicator equal to 1 if the firm is cross-listed—including listings on the Hong Kong Stock Exchange—and 0 otherwise. InternalControl_Quality is proxied by the natural logarithm of the internal control index score, sourced from the Dibo Internal Control Dataset. In Model (5), Financial_Ratio_ExcludingCEO captures the proportion of TMT members with financial experience, excluding the CEO, relative to the total number of non-CEO TMT members. Models (6) and (7), in which the key dependent and independent variables are expressed in changes, incorporate firm fixed effects to control for time-invariant unobserved heterogeneity. All independent variables are lagged by one year except for Growth and Loss. Statistical significance is indicated by ***, **, and * corresponding to the 1%, 5%, and 10% levels, respectively

Source(s): Authors’ own work

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