Table III Additional testing based on...

Table III

Additional testing based on internal control effectiveness above sample average value

	CETR1_HIGH_IC			CETR2_HIGH_IC
Variable	Coef.	p-value	VIF	Coef.	p-value	VIF
C	−0.15	0.02**		−0.195	0.005*
IC	0.71	0.00***	2.17	0.777	0.000***	2.78
SIZE	−0.08	0.12	1.01	0.051	0.348	1.13
ROA	−0.77	0.01***	2.17	−0.669	0.008***	2.65
FAM				−0.355	0.053*	8.49
UE				0.395	0.019**	8.22
IC×FAM				0.493	0.113	8.86
IC×UE				−0.439	0.220	8.70
R²	0.393			0.447
Prob>F	0.000			0.000
n	240			240

	CETR1_HIGH_IC			CETR2_HIGH_IC
Variable	Coef.	p-value	VIF	Coef.	p-value	VIF
C	−0.15	0.02**		−0.195	0.005*
IC	0.71	0.00***	2.17	0.777	0.000***	2.78
SIZE	−0.08	0.12	1.01	0.051	0.348	1.13
ROA	−0.77	0.01***	2.17	−0.669	0.008***	2.65
FAM				−0.355	0.053*	8.49
UE				0.395	0.019**	8.22
IC×FAM				0.493	0.113	8.86
IC×UE				−0.439	0.220	8.70
R²	0.393			0.447
Prob>F	0.000			0.000
n	240			240

Notes: CETR_it, company’s cash effective tax rate i in year t; IC_it, disclosure score of company internal control i in year t; FAM_it, ownership of shares by company family i in year t; EU_it, uncertainty of company i’s environment in year t; SIZE_it, company size is measured using the logarithm of the total assets of company i in year t; ROA_it, return on company assets i in year t. *,**,***Significant at α=10, 5 and 1 percent (one-tailed): $CETR 1_{i t} = α_{i t} + β_{1} {IC}_{i t} + β_{2} {SIZE}_{i t} + β_{3} {ROA}_{i t} + ε_{i t} CETR 2_{i t} = α_{i t} + β_{1} {IC}_{i t} + β_{2} {FAM}_{i t} + β_{3} UE + β_{4} IC \times {FAM}_{i t} + β_{5} IC \times {UE}_{i t} + β_{6} {SIZE}_{i t} + β_{7} {ROA}_{i t} + ε_{i t}$

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