Table 12. Board gender, earnings...

Table 12.

Board gender, earnings management and tax avoidance: mechanism test

	(1)	(2)	(3)	(4)
Variables	Dependent variable:DLLP	Dependent variable: ETR
Panel A: Baron and Kenny’s (1986) causal step regression – Mediating role of earnings management using DLLP (direct approach)
FPBOD	−0.026* (0.0132)	−0.148** (0.058)		−0.143** (0.062)
DLLP			−0.576*** (0.213)	−0.624*** (0.203)
Constant	0.354* (0.184)	0.497 (0.303)	1.204*** (0.343)	1.111*** (0.352)
All controls	Yes	Yes	Yes	Yes
Year fixed	Yes	Yes	Yes	Yes
Observations	275	341	275	275
Adjusted R-squared	0.085	0.319	0.371	0.382

	(1)	(2)	(3)	(4)
Variables	Dependent variable:DLLP	Dependent variable: ETR
Panel A: Baron and Kenny’s (1986) causal step regression – Mediating role of earnings management using DLLP (direct approach)
FPBOD	−0.026* (0.0132)	−0.148** (0.058)		−0.143** (0.062)
DLLP			−0.576*** (0.213)	−0.624*** (0.203)
Constant	0.354* (0.184)	0.497 (0.303)	1.204*** (0.343)	1.111*** (0.352)
All controls	Yes	Yes	Yes	Yes
Year fixed	Yes	Yes	Yes	Yes
Observations	275	341	275	275
Adjusted R-squared	0.085	0.319	0.371	0.382

Panel B: Mediating role of DLLP (indirect path analysis)
Path tested board gender diversity (FPBOD) → earnings management (DLLP) → tax avoidance (ETR)
Sobel (p-value)	0.098*
Aroian(p-value)	0.111
Goodman(p-value)	0.085*

Note(s):

Superscripts ***, ** and * denote significance at the 1, 5 and 10% levels, respectively. Robust standard errors are reported in parentheses. The definitions of variables are given in Appendix

Source(s): Created by authors

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Panel B: Mediating role of DLLP (indirect path analysis)
Path tested board gender diversity (FPBOD) → earnings management (DLLP) → tax avoidance (ETR)
Sobel (p-value)	0.098*
Aroian(p-value)	0.111
Goodman(p-value)	0.085*

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