Channel tests
| Dependent variable | Avg3_GAAP_ETR | Avg3_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_FY | 0.024* (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) | ||||
| Controls | Yes | Yes | Yes | Yes | Yes | Yes |
| Country FE | Yes | Yes | Yes | Yes | Yes | Yes |
| Industry-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 | 169.62*** | 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_FY | 0.045** (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) | ||||
| Controls | Yes | Yes | Yes | Yes | Yes | Yes |
| Country FE | No | No | No | No | No | No |
| Industry-Year FE | Yes | Yes | Yes | Yes | Yes | Yes |
| N | 2,304 | 2,304 | 2,304 | 2,137 | 2,137 | 2,137 |
| R2 (overall) | 0.09 | 0.09 | 0.09 | 0.11 | 0.11 | 0.11 |
| Wald Chi2 | 141.38*** | 143.08*** | 142.64*** | 143.17*** | 149.12*** | 141.01*** |
| Avg3_GAAP_ETR | Avg3_Cash_ETR | |||||
|---|---|---|---|---|---|---|
| Const | −0.830 ( | −0.721 ( | −0.72 ( | −0.883 ( | −0.668 ( | −0.720 ( |
| NegM_peak_FY | 0.024* ( | −0.008 ( | ||||
| NegM_peak_Q4 | 0.019* ( | −0.012 ( | ||||
| NegM_peak_Q4Q1 | 0.016 ( | −0.019 ( | ||||
| FTE | −0.023 ( | −0.028 ( | −0.029 ( | 0.021 ( | 0.015 ( | 0.015 ( |
| NegM_peak_FY × FTE | −0.011 ( | 0.032** ( | ||||
| NegM_peak_Q4 × FTE | −0.006 ( | 0.036*** ( | ||||
| NegM_peak_Q4Q1 × FTE | −0.003 ( | 0.041*** ( | ||||
| Controls | Yes | Yes | Yes | Yes | Yes | Yes |
| Country FE | Yes | Yes | Yes | Yes | Yes | Yes |
| Industry-Year FE | Yes | Yes | Yes | Yes | Yes | Yes |
| 2,309 | 2,309 | 2,309 | 2,142 | 2,142 | 2,142 | |
| 0.12 | 0.12 | 0.12 | 0.14 | 0.14 | 0.14 | |
| Wald Chi2 | 169.62*** | 171.69*** | 171.12*** | 167.85*** | 177.14*** | 171.77*** |
| Const | −0.622** ( | −0.595** ( | −0.598** ( | −0.272 ( | −0.237 ( | −0.250 ( |
| NegM_peak_FY | 0.045** ( | 0.079*** ( | ||||
| 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) | ||||
| Controls | Yes | Yes | Yes | Yes | Yes | Yes |
| Country FE | No | No | No | No | No | No |
| Industry-Year FE | Yes | Yes | Yes | Yes | Yes | Yes |
| 2,304 | 2,304 | 2,304 | 2,137 | 2,137 | 2,137 | |
| R2 (overall) | 0.09 | 0.09 | 0.09 | 0.11 | 0.11 | 0.11 |
| Wald Chi2 | 141.38*** | 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
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