Table A4.

Channel tests

Dependent variableAvg3_GAAP_ETRAvg3_Cash_ETR
Panel A: tax enforcement
Const−0.830 (1.463)−0.721 (1.462)−0.72 (1.463)−0.883 (1.709)−0.668 (1.706)−0.720 (1.710)
NegM_peak_FY0.024* (0.013)  −0.008 (0.015)  
NegM_peak_Q4 0.019* (0.011)  −0.012 (0.013) 
NegM_peak_Q4Q1  0.016 (0.012)  −0.019 (0.014)
FTE−0.023 (0.033)−0.028 (0.033)−0.029 (0.033)0.021 (0.040)0.015 (0.039)0.015 (0.039)
NegM_peak_FY × FTE−0.011 (0.013)  0.032** (0.016)  
NegM_peak_Q4 × FTE −0.006 (0.011)  0.036*** (0.010) 
NegM_peak_Q4Q1 × FTE  −0.003 (0.012)  0.041*** (0.014)
ControlsYesYesYesYesYesYes
Country FEYesYesYesYesYesYes
Industry-Year FEYesYesYesYesYesYes
N2,3092,3092,3092,1422,1422,142
R2 (overall)0.120.120.120.140.140.14
Wald Chi2169.62***171.69***171.12***167.85***177.14***171.77***
Panel B: TV state ownership
Const−0.622** (0.245)−0.595** (0.245)−0.598** (0.245)−0.272 (0.274)−0.237 (0.274)−0.250 (0.274)
NegM_peak_FY0.045** (0.021)  0.079*** (0.025)  
NegM_peak_Q4 0.035* (0.018)  0.072*** (0.022) 
NegM_peak_Q4Q1  0.038* (0.020)  0.066*** (0.023)
TV_st−0.003 (0.061)−0.017 (0.059)−0.014 (0.060)0.058 (0.070)0.048 (0.067)0.042 (0.068)
NegM_peak_FY × TV_st−0.054 (0.036)  −0.010* (0.042)  
NegM_peak_Q4 × TV_st −0.038 (0.031)  −0.088** (0.036) 
NegM_peak_Q4Q1 × TV_st  −0.041 (0.033)  −0.082** (0.039)
ControlsYesYesYesYesYesYes
Country FENoNoNoNoNoNo
Industry-Year FEYesYesYesYesYesYes
N2,3042,3042,3042,1372,1372,137
R2 (overall)0.090.090.090.110.110.11
Wald Chi2141.38***143.08***142.64***143.17***149.12***141.01***

Notes:

Standard errors in parentheses; Controls include all the controls used in the baseline model; ***, ** and * indicate significance levels at 1, 5 and 10% respectively

Source: Authors’ own creation

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