Tax avoidance and ESG performance after entering the CC program
| Dependent variables | Current ETR | Deferred ETR | GAAP ETR | ESG score |
|---|---|---|---|---|
| (1) | (2) | (3) | (4) | |
| Adoption | 0.066*** (0.024) | −0.038* (0.022) | 0.013 (0.024) | −0.159* (0.094) |
| Size | 0.044 (0.041) | −0.046 (0.036) | −0.004 (0.049) | −0.037 (0.193) |
| ROA | −0.003 (0.003) | −0.002 (0.001) | −0.003 (0.002) | 0.001 (0.004) |
| Growth | 0.002 (0.013) | −0.007*** (0.002) | 0.000 (0.012) | −0.000 (0.000) |
| ROA volatility | −0.007 (0.004) | 0.002 (0.002) | −0.004 (0.004) | 0.260 (0.328) |
| Leverage | 0.007 (0.005) | −0.002 (0.002) | 0.005 (0.005) | 0.000 (0.000) |
| Intangibles | −0.005 (0.004) | 0.001 (0.002) | −0.003 (0.004) | 0.528 (0.601) |
| Constant | −0.331 (0.558) | 0.668 (0.497) | 0.320 (0.657) | 0.859 (2.701) |
| Firm FE | Yes | Yes | Yes | Yes |
| Year FE | Yes | Yes | Yes | Yes |
| Observations | 1,466 | 1,224 | 1,466 | 245 |
| R-squared | 0.689 | 0.697 | 0.673 | 0.819 |
| Dependent variables | ||||
|---|---|---|---|---|
| (1) | (2) | (3) | (4) | |
| 0.066 | −0.038 | 0.013 (0.024) | −0.159 | |
| 0.044 (0.041) | −0.046 (0.036) | −0.004 (0.049) | −0.037 (0.193) | |
| −0.003 (0.003) | −0.002 (0.001) | −0.003 (0.002) | 0.001 (0.004) | |
| 0.002 (0.013) | −0.007 | 0.000 (0.012) | −0.000 (0.000) | |
| −0.007 (0.004) | 0.002 (0.002) | −0.004 (0.004) | 0.260 (0.328) | |
| 0.007 (0.005) | −0.002 (0.002) | 0.005 (0.005) | 0.000 (0.000) | |
| −0.005 (0.004) | 0.001 (0.002) | −0.003 (0.004) | 0.528 (0.601) | |
| −0.331 (0.558) | 0.668 (0.497) | 0.320 (0.657) | 0.859 (2.701) | |
| Firm FE | Yes | Yes | Yes | Yes |
| Year FE | Yes | Yes | Yes | Yes |
| Observations | 1,466 | 1,224 | 1,466 | 245 |
| R-squared | 0.689 | 0.697 | 0.673 | 0.819 |
Note(s): This table shows whether CC program adoption increases firms’ tax compliance and ESG performance. Results show coefficients of a fixed effects model with Current ETR in column (1), Deferred ETR in column (2), GAAP ETR in column (3) and ESG score in column (4) as the dependent variables. Our full sample period is the 2014–2021 period. Standard errors are clustered at the firm level, adjusted for heteroskedasticity, and are reported within parentheses. Significance at the 10, 5 and 1% levels is indicated by *, ** and ***, respectively. FE denotes fixed effect. All continuous variables are winsorised at 1% and 99% levels
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