Table 6

Multivariate analysis of ownership-motivated income shifting

Ownership-motivated and tax-motivated income shifting between pairs of subsidiaries
Dependent variable ln(PBT)Exp. Sign.Model 3
Estimatep-value
C tax foreign subsidiaries−0.0550.170
Ownership subsidiaries+0.5360.010
ln(TangibleAssets)+0.157<0.001
ln(CompExp)+0.570<0.001
ln(GDP)?0.527<0.001
Constant −3.8690.001
Year and parent firm fixed effects included 
Adj. R2 0.486 
Number of observation 1,690 

Note(s): Coefficient p-values are one-tailed. Refer to  Appendix for variable definitions

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