Table IV Additional testing effects of...

Table IV

Additional testing effects of internal control on tax avoidance

	CETR1			CETR
Variable	Coef.	p-value	VIF	Coef.	p-value	VIF
C	0.409	0.000***		0.374	0.000***
IC	0.309	0.020**	2.25	0.357	0.012**	2.59
SIZE	−0.383	0.005***	1.01	−0.328	0.183	1.14
ROA	−1.814	0.000***	2.26	−1.723	0.000***	2.56
FAM				−0.494	0.052*	7.99
UE				0.262	0.204	8.94
IC×FAM				0.395	0.074*	8.33
IC×UE				−0.447	0.307	9.00
R²	0.054			0.046
Prob>F	0.000			0.000
n	240			240

	CETR1			CETR
Variable	Coef.	p-value	VIF	Coef.	p-value	VIF
C	0.409	0.000***		0.374	0.000***
IC	0.309	0.020**	2.25	0.357	0.012**	2.59
SIZE	−0.383	0.005***	1.01	−0.328	0.183	1.14
ROA	−1.814	0.000***	2.26	−1.723	0.000***	2.56
FAM				−0.494	0.052*	7.99
UE				0.262	0.204	8.94
IC×FAM				0.395	0.074*	8.33
IC×UE				−0.447	0.307	9.00
R²	0.054			0.046
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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