Table 3. Negative media coverage of ESG...

Table 3.

Negative media coverage of ESG and alternative measures of tax avoidance

Dependent variable	Delta_tax	Delta_tax	Delta_tax	BTD	BTD	BTD	Ab_Perm_BTD	Ab_Perm_BTD	Ab_Perm_BTD
Const	−0.065 (0.097)	−0.057 (0.097)	0.054 (0.097)	0.779 (0.733)	0.728 (0.734)	0.730 (0.734)	0.348 (1.239)	0.257 (1.239)	0.291 (1.237)
NegM_peak_FY	0.001*** (0.000)			−0.007*** (0.002)			−0.006*** (0.002)
NegM_peak_Q4		0.001*** (0.000)			−0.005*** (0.002)			−0.006*** (0.002)
NegM_peak_Q4Q1			0.001*** (0.000)			−0.005*** (0.002)			−0.007*** (0.002)
Size	−0.001*** (0.000)	−0.001*** (0.000)	−0.001*** (0.000)	0.007*** (0.002)	0.007*** (0.002)	0.007*** (0.002)	0.001 (0.001)	0.001 (0.001)	0.002 (0.001)
Leverage	−0.003* (0.002)	−0.003* (0.002)	−0.004* (0.002)	0.035** (0.014)	0.035** (0.014)	0.035** (0.014)	−0.009 (0.012)	−0.009 (0.012)	−0.009 (0.012)
Profitability	−0.077*** (0.028)	−0.077*** (0.003)	−0.077*** (0.003)	0.527*** (0.020)	0.527*** (0.020)	0.526*** (0.020)	0.194*** (0.018)	0.195*** (0.018)	0.194*** (0.018)
PPE	−0.002 (0.001)	−0.002 (0.001)	−0.002 (0.001)	0.016* (0.008)	0.016* (0.008)	0.016* (0.008)	0.003 (0.007)	0.003 (0.007)	0.003 (0.007)
Intangibles	0.004*** (0.001)	0.004*** (0.001)	0.004*** (0.001)	−0.016** (0.007)	−0.016** (0.007)	−0.016** (0.007)	−0.007 (0.006)	−0.008 (0.006)	−0.008 (0.006)
RD	0.008 (0.008)	0.008 (0.008)	0.008 (0.008)	−0.090 (0.057)	−0.092 (0.057)	−0.093 (0.057)	0.112** (0.047)	0.113** (0.047)	0.113** (0.047)
Cash	0.004 (0.002)	0.004 (0.002)	0.004 (0.002)	−0.091*** (0.017)	−0.090*** (0.017)	−0.090*** (0.017)	−0.029* (0.015)	−0.028* (0.015)	−0.027* (0.015)
MTBV	0.001*** (0.000)	0.001*** (0.000)	0.001*** (0.000)	−0.002*** (0.000)	−0.002*** (0.000)	−0.002*** (0.000)	−0.001*** (0.000)	−0.001*** (0.000)	−0.001*** (0.000)
GDP	0.008 (0.009)	0.007 (0.009)	0.007 (0.009)	−0.090 (0.071)	−0.085 (0.071)	−0.085 (0.071)	−0.038 (0.120)	−0.029 (0.120)	−0.033 (0.120)
Jud_ind	0.001 (0.001)	0.001 (0.001)	0.001 (0.001)	0.005 (0.004)	0.005 (0.004)	0.005 (0.004)	0.004 (0.005)	0.004 (0.005)	0.004 (0.005)
Shar_gov	−0.001*** (0.000)	−0.001*** (0.000)	−0.001*** (0.000)	0.001 (0.003)	0.001 (0.003)	0.001 (0.003)	0.002 (0.003)	0.002 (0.003)	0.002 (0.003)
BTC	−0.003 (0.003)	−0.003 (0.003)	−0.002 (0.003)	0.014 (0.022)	0.014 (0.022)	0.014 (0.022)	0.017 (0.022)	0.016 (0.022)	0.017 (0.022)
Industry FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Country FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Year FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
N	2,156	2,156	2,156	2,309	2,309	2,309	1,860	1,860	1,860
R² (overall)	0.26	0.26	0.26	0.21	0.21	0.21	0.13	0.14	0.14
Wald Chi²	973.18***	975.26***	985.07***	806.33***	801.90***	801.11***	216.06***	220.27***	223.67***
Max VIF	2.46	2.46	2.46	2.46	2.46	2.46	2.46	2.46	2.46

Dependent variable	Delta_tax	Delta_tax	Delta_tax	BTD	BTD	BTD	Ab_Perm_BTD	Ab_Perm_BTD	Ab_Perm_BTD
Const	−0.065 (0.097)	−0.057 (0.097)	0.054 (0.097)	0.779 (0.733)	0.728 (0.734)	0.730 (0.734)	0.348 (1.239)	0.257 (1.239)	0.291 (1.237)
NegM_peak_FY	0.001*** (0.000)			−0.007*** (0.002)			−0.006*** (0.002)
NegM_peak_Q4		0.001*** (0.000)			−0.005*** (0.002)			−0.006*** (0.002)
NegM_peak_Q4Q1			0.001*** (0.000)			−0.005*** (0.002)			−0.007*** (0.002)
Size	−0.001*** (0.000)	−0.001*** (0.000)	−0.001*** (0.000)	0.007*** (0.002)	0.007*** (0.002)	0.007*** (0.002)	0.001 (0.001)	0.001 (0.001)	0.002 (0.001)
Leverage	−0.003* (0.002)	−0.003* (0.002)	−0.004* (0.002)	0.035** (0.014)	0.035** (0.014)	0.035** (0.014)	−0.009 (0.012)	−0.009 (0.012)	−0.009 (0.012)
Profitability	−0.077*** (0.028)	−0.077*** (0.003)	−0.077*** (0.003)	0.527*** (0.020)	0.527*** (0.020)	0.526*** (0.020)	0.194*** (0.018)	0.195*** (0.018)	0.194*** (0.018)
PPE	−0.002 (0.001)	−0.002 (0.001)	−0.002 (0.001)	0.016* (0.008)	0.016* (0.008)	0.016* (0.008)	0.003 (0.007)	0.003 (0.007)	0.003 (0.007)
Intangibles	0.004*** (0.001)	0.004*** (0.001)	0.004*** (0.001)	−0.016** (0.007)	−0.016** (0.007)	−0.016** (0.007)	−0.007 (0.006)	−0.008 (0.006)	−0.008 (0.006)
RD	0.008 (0.008)	0.008 (0.008)	0.008 (0.008)	−0.090 (0.057)	−0.092 (0.057)	−0.093 (0.057)	0.112** (0.047)	0.113** (0.047)	0.113** (0.047)
Cash	0.004 (0.002)	0.004 (0.002)	0.004 (0.002)	−0.091*** (0.017)	−0.090*** (0.017)	−0.090*** (0.017)	−0.029* (0.015)	−0.028* (0.015)	−0.027* (0.015)
MTBV	0.001*** (0.000)	0.001*** (0.000)	0.001*** (0.000)	−0.002*** (0.000)	−0.002*** (0.000)	−0.002*** (0.000)	−0.001*** (0.000)	−0.001*** (0.000)	−0.001*** (0.000)
GDP	0.008 (0.009)	0.007 (0.009)	0.007 (0.009)	−0.090 (0.071)	−0.085 (0.071)	−0.085 (0.071)	−0.038 (0.120)	−0.029 (0.120)	−0.033 (0.120)
Jud_ind	0.001 (0.001)	0.001 (0.001)	0.001 (0.001)	0.005 (0.004)	0.005 (0.004)	0.005 (0.004)	0.004 (0.005)	0.004 (0.005)	0.004 (0.005)
Shar_gov	−0.001*** (0.000)	−0.001*** (0.000)	−0.001*** (0.000)	0.001 (0.003)	0.001 (0.003)	0.001 (0.003)	0.002 (0.003)	0.002 (0.003)	0.002 (0.003)
BTC	−0.003 (0.003)	−0.003 (0.003)	−0.002 (0.003)	0.014 (0.022)	0.014 (0.022)	0.014 (0.022)	0.017 (0.022)	0.016 (0.022)	0.017 (0.022)
Industry FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Country FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Year FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
N	2,156	2,156	2,156	2,309	2,309	2,309	1,860	1,860	1,860
R² (overall)	0.26	0.26	0.26	0.21	0.21	0.21	0.13	0.14	0.14
Wald Chi²	973.18***	975.26***	985.07***	806.33***	801.90***	801.11***	216.06***	220.27***	223.67***
Max VIF	2.46	2.46	2.46	2.46	2.46	2.46	2.46	2.46	2.46

Notes:

Standard errors in parentheses. Size, Leverage, Profitability, PPE, Intangibles, RD, Cash and MTBV are winsorised at the 1st and 99th percentiles; ***, ** and * indicate significance levels at 1, 5 and 10%, respectively. Coefficients in bold refer to hypothesis testing

Source: Authors own creation

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