Table A1. Sum of negative media coverage...

Table A1.

Sum of negative media coverage and tax avoidance

Dependent variable	Predicted sign	Avg3_GAAP_ETR			Avg3_cash_ETR
Const		−0.734 (1.464)	−0.658 (1.464)	−0.647 (1.463)	−0.678 (1.711)	−0.587 (1.709)	−0.622 (1.711)
NegM_sum_FY	+	0.010** (0.005)			0.023*** (0.006)
NegM_sum_Q4	+		0.011*** (0.004)			0.021*** (0.005)
NegM_sum_Q4Q1	+			0.014*** (0.005)			0.022*** (0.005)
Size		0.012*** (0.004)	0.011*** (0.004)	0.010*** (0.004)	0.007 (0.004)	0.007* (0.004)	0.007* (0.004)
Leverage		0.072** (0.030)	0.071** (0.030)	0.071** (0.030)	−0.007 (0.035)	−0.008 (0.035)	−0.009 (0.035)
Profitability		0.027 (0.042)	0.026 (0.042)	0.026 (0.041)	−0.034 (0.050)	−0.035 (0.050)	−0.034 (0.050)
PPE		−0.063*** (0.018)	−0.063*** (0.018)	−0.063*** (0.018)	−0.072*** (0.020)	−0.073*** (0.020)	−0.072*** (0.020)
Intangibles		0.009 (0.015)	0.010 (0.015)	0.010 (0.015)	0.063*** (0.017)	0.064*** (0.017)	0.064*** (0.017)
RD		−0.198 (0.123)	−0.201 (0.123)	−0.203* (0.123)	0.057 (0.140)	0.056 (0.140)	0.055 (0.140)
Cash		0.037 (0.036)	0.035 (0.036)	0.033 (0.036)	0.013 (0.043)	0.011 (0.043)	0.009 (0.043)
MTBV		0.001 (0.001)	0.001 (0.001)	0.001 (0.001)	−0.001 (0.001)	0.001 (0.001)	0.001 (0.001)
GDP		0.076 (0.142)	0.069 (0.142)	0.069 (0.142)	0.91 (0.166)	0.082 (0.166)	0.085 (0.166)
Jud_ind		−0.032*** (0.009)	−0.032*** (0.009)	−0.032*** (0.009)	−0.032*** (0.011)	−0.033*** (0.011)	−0.033*** (0.011)
Shar_gov		−0.003 (0.005)	−0.002 (0.005)	−0.003 (0.005)	−0.006 (0.007)	−0.005 (0.007)	−0.006 (0.007)
BTC		−0.018 (0.050)	−0.017 (0.050)	−0.017 (0.050)	−0.072 (0.056)	−0.070 (0.056)	−0.071 (0.056)
CTSR		0.750*** (0.287)	0.742*** (0.287)	0.759*** (0.286)	0.328 (0.348)	0.326 (0.347)	0.348 (0.348)
Industry FE		Yes	Yes	Yes	Yes	Yes	Yes
Country FE		Yes	Yes	Yes	Yes	Yes	Yes
Year FE		Yes	Yes	Yes	Yes	Yes	Yes
N		2,309	2,309	2,309	2,142	2,142	2,142
R² (overall)		0.12	0.12	0.12	0.14	0.14	0.14
Wald Chi²		164.30***	167.42***	170.43***	162.68***	165.29***	164.37***
Max VIF		2.46	2.46	2.46	2.46	2.46	2.46

Dependent variable	Predicted sign	Avg3_GAAP_ETR			Avg3_cash_ETR
Const		−0.734 (1.464)	−0.658 (1.464)	−0.647 (1.463)	−0.678 (1.711)	−0.587 (1.709)	−0.622 (1.711)
NegM_sum_FY	+	0.010** (0.005)			0.023*** (0.006)
NegM_sum_Q4	+		0.011*** (0.004)			0.021*** (0.005)
NegM_sum_Q4Q1	+			0.014*** (0.005)			0.022*** (0.005)
Size		0.012*** (0.004)	0.011*** (0.004)	0.010*** (0.004)	0.007 (0.004)	0.007* (0.004)	0.007* (0.004)
Leverage		0.072** (0.030)	0.071** (0.030)	0.071** (0.030)	−0.007 (0.035)	−0.008 (0.035)	−0.009 (0.035)
Profitability		0.027 (0.042)	0.026 (0.042)	0.026 (0.041)	−0.034 (0.050)	−0.035 (0.050)	−0.034 (0.050)
PPE		−0.063*** (0.018)	−0.063*** (0.018)	−0.063*** (0.018)	−0.072*** (0.020)	−0.073*** (0.020)	−0.072*** (0.020)
Intangibles		0.009 (0.015)	0.010 (0.015)	0.010 (0.015)	0.063*** (0.017)	0.064*** (0.017)	0.064*** (0.017)
RD		−0.198 (0.123)	−0.201 (0.123)	−0.203* (0.123)	0.057 (0.140)	0.056 (0.140)	0.055 (0.140)
Cash		0.037 (0.036)	0.035 (0.036)	0.033 (0.036)	0.013 (0.043)	0.011 (0.043)	0.009 (0.043)
MTBV		0.001 (0.001)	0.001 (0.001)	0.001 (0.001)	−0.001 (0.001)	0.001 (0.001)	0.001 (0.001)
GDP		0.076 (0.142)	0.069 (0.142)	0.069 (0.142)	0.91 (0.166)	0.082 (0.166)	0.085 (0.166)
Jud_ind		−0.032*** (0.009)	−0.032*** (0.009)	−0.032*** (0.009)	−0.032*** (0.011)	−0.033*** (0.011)	−0.033*** (0.011)
Shar_gov		−0.003 (0.005)	−0.002 (0.005)	−0.003 (0.005)	−0.006 (0.007)	−0.005 (0.007)	−0.006 (0.007)
BTC		−0.018 (0.050)	−0.017 (0.050)	−0.017 (0.050)	−0.072 (0.056)	−0.070 (0.056)	−0.071 (0.056)
CTSR		0.750*** (0.287)	0.742*** (0.287)	0.759*** (0.286)	0.328 (0.348)	0.326 (0.347)	0.348 (0.348)
Industry FE		Yes	Yes	Yes	Yes	Yes	Yes
Country FE		Yes	Yes	Yes	Yes	Yes	Yes
Year FE		Yes	Yes	Yes	Yes	Yes	Yes
N		2,309	2,309	2,309	2,142	2,142	2,142
R² (overall)		0.12	0.12	0.12	0.14	0.14	0.14
Wald Chi²		164.30***	167.42***	170.43***	162.68***	165.29***	164.37***
Max VIF		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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