A Potential Risk of Increasing Cross-National Distance: Evidence from Less Sustainable Tax Policies
Abstract
:1. Introduction
2. Literature Review and Hypothesis Development
2.1. Book-Tax Difference and Sustainable Tax Policies
2.2. Cross-National Distance of FDI and Sustainable Tax Policies
3. Empirical Method
3.1. Regression Model
3.2. Sample Selection
4. Results
4.1. Descriptive Statistics and Correlations
4.2. Multivariate Results
4.3. Robustness Checks
4.3.1. Subsample Analysis
4.3.2. Endogeneity
5. Further Analysis
5.1. FDI in Tax Haven Countries
5.2. Meeting Earnings Benchmark
5.3. Foreign Ownership
6. Conclusions and Discussion
Funding
Acknowledgments
Conflicts of Interest
Appendix A
Dimension | Component Variables | Source | Years Available | # of Countries | Literature * | |||
---|---|---|---|---|---|---|---|---|
[11] | [12] | [27] | [28] | |||||
Administrative Distance (ADM) | ○ | ○ | × | △ | ||||
Colonizer-colonized link | Whether dyad shares a colonial tie | CIA Factbook | constant | 198 | ||||
Common language | % population that speak the same language in the dyad | CIA Factbook | constant | 198 | ||||
Common religion | % population that share the same religion in the dyad | CIA Factbook | constant | 198 | ||||
Legal system | Whether dyad shares the same legal system | La Porta et al. [13] | constant | 198 | ||||
Cultural Distance (CUL) | ○ | ○ | × | × | ||||
Power distance | The degree to which the members accept that power is distributed unequally | Hofstede et al. [14] | constant | 102 | ||||
Individualism | Individuals are expected to take care of only themselves and their immediate families | Hofstede et al. [14] | constant | 102 | ||||
Masculinity | A preference for achievement, heroism, assertiveness, and material rewards for success | Hofstede et al. [14] | constant | 102 | ||||
Uncertainty avoidance | The degree to which the members feel uncomfortable with uncertainty and ambiguity | Hofstede et al. [14] | constant | 102 | ||||
Long term orientation | The connection of the past with the current and future actions or challenges | Hofstede et al. [14] | constant | 86 | ||||
Indulgence | A society that allows relatively free gratification of basic | Hofstede et al. [14] | constant | 81 | ||||
Demographic Distance (DEM) | ○ | ○ | × | × | ||||
Life expectancy | Life expectancy at birth, total (years) | WDI | 2004–2014 | 249 | ||||
Birth rate | Birth rate, crude (per 1000 people) | WDI | 2004–2014 | 256 | ||||
Population under 14 | Population ages 0–14 (% of total) | WDI | 2004–2014 | 240 | ||||
Population under 65 | Population ages 65 and above (% of total) | WDI | 2004–2014 | 240 | ||||
Economic Distance (ECO) | ○ | ○ | ○ | × | ||||
Income | GDP per capita (constant 2010 US$) | WDI | 2004–2014 | 249 | ||||
Inflation | GDP deflator (base year varies by country) | WDI | 2004–2014 | 205 | ||||
Exports | Exports of goods and services (% of GDP) | WDI | 2004–2014 | 242 | ||||
Imports | Imports of goods and services (% of GDP) | WDI | 2004–2014 | 242 | ||||
Geographic Distance (GEO) | ○ | ○ | × | × | ||||
Grate circle distance | Distance between two countries according to the geographic center of the countries | CIA Factbook | constant | 196 | ||||
Knowledge Distance (KNO) | ○ | ○ | × | × | ||||
Patents | Number of patents per one million population | WDI and USPTO | 2004–2014 | 171 | ||||
Scientific articles | Number of scientific articles per one million population | WDI and SJR | 2004–2014 | 210 | ||||
Political Distance (POL) | ○ | ○ | × | △ | ||||
Political stability | Measured by considering independent institutional actors with veto power | POLCON | 2004–2014 | 187 | ||||
Size of the state | General government final consumption expenditure (% of GDP) | WDI | 2004–2014 | 233 | ||||
WTO member | Membership in WTO (GATT before 1993) | WTO | 2004–2015 | 163 | ||||
Regional trade agreement | Number of RTAs in force | WTO | 2004–2015 | 213 |
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Variables | Definitions |
---|---|
Dependent variables | |
STP | A dummy variable that equals 1 if a firm has a sustainable tax policy, and 0 otherwise. Sustainable tax policy refers to the case where the firm has a low level of BTAX as well as a low level of standard deviation of BTAX for the three-year period (both lower than the median). Where BTAX is pre-tax accounting income less taxable income (where taxable income is computed as income tax expense divided by the statutory corporate tax rate) divided by lagged total assets; |
Test variables | |
ADM | Sum of the administrative distances (Mahalanobis distances) between Japan and host countries; |
CUL | Sum of the cultural distances (Mahalanobis distances) between Japan and host countries; |
DEM | Sum of the demographic distances (Mahalanobis distances) between Japan and host countries; |
ECO | Sum of the economic distances (Mahalanobis distances) between Japan and host countries; |
GEO | Sum of the total great circle distances, in 1000 km, between Japan and host countries according to the coordinates of the geographic center of the countries; |
KNO | Sum of the knowledge distances (Mahalanobis distances) between Japan and host countries; |
POL | Sum of the political distances (Mahalanobis distances) between Japan and host countries; |
Control variables | |
△SALE | Changes in sales/lagged net sales; |
CASH | Cash and marketable securities/lagged total assets; |
CFO | Cash flow from operations/lagged total assets; |
DISC | A dummy variable that equals 1 if a firm disclose geographic overseas sales, and 0 otherwise; |
EM | A dummy variable that equal 1 if the change in net income from year t–1 to year t/the market value at year t–2, is greater than 0 and less than or equal to 0.01, and 0 otherwise; |
EMP | The natural logarithm of the number of employees; |
EQLNE | Equity income/lagged total assets; |
FOREIGN | A dummy variable that equals 1 if the proportion of a firm’s foreign ownership is highest, and 0 otherwise; |
INTANG | Intangible asset/lagged total assets; |
INVINT | Inventory/lagged total assets; |
LEV | Total debt/lagged total assets; |
LOSSINT | Loss intensity over the previous four-year period defined as the number of years a firm has negative pre-tax income from year t–4 to year t–1 scaled to range between 0 and 1; |
NOL | A dummy variable that equals 1 if loss carry-forward is negative at the beginning of year, and 0 otherwise; |
RD | Research and development expense/lagged total assets; |
SIZE | Natural logarithm of the total assets; |
TAGG | A dummy variable that equals 1 if a firm is tax aggressive, and 0 otherwise. Tax aggressiveness is defined as a firm with either a CAS_ETR or CUR_ETR in the lowest quintile by year and industry membership. Where CAS_ETR is cash effective tax rate of the six-year sum of cash taxes paid to the six-year sum of pre-tax book income. CUR_ETR is current effective tax rate of the six-year sum of current tax expense to the six-year sum of pre-tax book income. CAS_ETR and CUR_ETR are truncated to the range (0,1); |
THAV | A dummy variable that equals 1 if a firm has at least one subsidiary firm incorporated in a tax haven, and 0 otherwise; |
Id | Industry dummy variable that equals 1 if the firm is represented in the specific TSE New Industry Code category, and 0 otherwise; |
Yd | Year dummy variable that equals 1 if the year falls within the specific year category, and 0 otherwise; |
Variables added in robust tests | |
ADV | Advertisement expenditure/net sales; |
CAP | Ownership equity/lagged total assets; |
INTEREST | Interest expense/total debt; |
QUICTR | Liquid assets/current liabilities; |
ROA | Net income/lagged total assets. |
Listed companies for fiscal years 2006 to 2014 | 16,993 * | |
(less) Banks and financial institutions | −1013 | |
(less) Taxation data unavailable | −5340 ** | |
(less) Financial data unavailable | −1604 | |
Full available sample | 9036 |
Full Sample (n = 9036) | FDI (n = 6295) | ||||||||
---|---|---|---|---|---|---|---|---|---|
Variable | Mean | Std. Dev. | Q1 | Median | Q3 | 0 | 1 | diff. | t-Statistic |
STP | 0.302 | 0.459 | 0.000 | 0.000 | 1.000 | 0.381 | 0.267 | 0.114 | 10.944 *** |
ECO | 44.091 | 59.518 | 0.000 | 15.076 | 71.450 | 0.000 | 63.289 | −63.289 | −53.263 *** |
POL | 23.057 | 33.246 | 0.000 | 9.852 | 33.998 | 0.000 | 33.097 | −33.097 | −48.924 *** |
ADM | 79.182 | 118.275 | 0.000 | 30.709 | 111.922 | 0.000 | 113.660 | −113.660 | −46.806 *** |
CUL | 75.683 | 101.517 | 0.000 | 38.109 | 109.000 | 0.000 | 108.638 | −108.638 | −53.710 *** |
DEM | 53.861 | 72.695 | 0.000 | 28.445 | 78.957 | 0.000 | 77.314 | −77.314 | −53.274 *** |
KNO | 113.796 | 180.270 | 0.000 | 45.140 | 147.796 | 0.000 | 163.346 | −163.346 | −43.552 *** |
GEO | 28.144 | 45.302 | 0.000 | 11.075 | 36.916 | 0.000 | 40.399 | −40.399 | −42.722 *** |
FOREIGN | 0.043 | 0.202 | 0.000 | 0.000 | 0.000 | 0.024 | 0.051 | −0.026 | −5.650 *** |
CASH | 0.303 | 0.157 | 0.202 | 0.279 | 0.374 | 0.290 | 0.308 | −0.018 | −5.101 *** |
INTANG | 0.024 | 0.048 | 0.004 | 0.010 | 0.023 | 0.021 | 0.025 | −0.004 | −4.070 *** |
LEV | 0.512 | 0.206 | 0.361 | 0.511 | 0.655 | 0.540 | 0.500 | 0.040 | 8.459 *** |
RD | 0.016 | 0.025 | 0.000 | 0.006 | 0.022 | 0.007 | 0.019 | −0.012 | −21.647 *** |
EQLNE | 0.001 | 0.005 | 0.000 | 0.000 | 0.001 | 0.001 | 0.002 | −0.001 | −8.332 *** |
NOL | 0.050 | 0.218 | 0.000 | 0.000 | 0.000 | 0.049 | 0.050 | −0.001 | −0.190 |
LOSSINT | 0.125 | 0.201 | 0.000 | 0.000 | 0.250 | 0.127 | 0.124 | 0.003 | 0.714 |
CFO | 0.067 | 0.059 | 0.038 | 0.065 | 0.094 | 0.063 | 0.068 | −0.005 | −3.883 *** |
MV | 4.920 | 0.615 | 4.493 | 4.842 | 5.289 | 4.700 | 5.015 | −0.316 | −23.106 *** |
DISC | 0.460 | 0.498 | 0.000 | 0.000 | 1.000 | 0.084 | 0.623 | −0.539 | −54.452 *** |
THAV | 0.179 | 0.383 | 0.000 | 0.000 | 0.000 | 0.018 | 0.248 | −0.231 | −27.378 *** |
EM | 0.165 | 0.371 | 0.000 | 0.000 | 0.000 | 0.177 | 0.160 | 0.017 | 2.040 ** |
EMP | 3.271 | 0.603 | 2.846 | 3.214 | 3.655 | 2.993 | 3.392 | −0.399 | −30.372 *** |
△SALE | 0.044 | 0.183 | −0.014 | 0.034 | 0.094 | 0.039 | 0.046 | −0.007 | −1.590 |
INVINT | 0.118 | 0.098 | 0.052 | 0.105 | 0.158 | 0.107 | 0.123 | −0.016 | −7.222 *** |
TAGG | 0.359 | 0.480 | 0.000 | 0.000 | 1.000 | 0.354 | 0.362 | −0.008 | −0.732 |
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
1. | STP | −0.12 | −0.13 | −0.13 | −0.14 | −0.13 | −0.13 | −0.14 | −0.05 | −0.29 | −0.11 | 0.27 | −0.20 | 0.00 | 0.09 | 0.13 | −0.32 | 0.05 | −0.16 | −0.05 | 0.05 | −0.01 | −0.15 | −0.03 | 0.04 | |
2. | ECO | −0.08 | 0.90 | 0.95 | 0.95 | 0.97 | 0.93 | 0.91 | 0.11 | 0.10 | 0.14 | −0.04 | 0.37 | 0.26 | 0.00 | −0.01 | 0.07 | 0.39 | 0.61 | 0.38 | −0.01 | 0.47 | 0.09 | 0.20 | 0.01 | |
3. | POL | −0.10 | 0.85 | 0.93 | 0.93 | 0.93 | 0.93 | 0.92 | 0.12 | 0.09 | 0.17 | −0.04 | 0.42 | 0.26 | 0.00 | −0.01 | 0.10 | 0.41 | 0.62 | 0.31 | 0.00 | 0.50 | 0.07 | 0.21 | 0.00 | |
4. | ADM | −0.09 | 0.88 | 0.92 | 0.99 | 0.98 | 0.96 | 0.97 | 0.12 | 0.11 | 0.17 | −0.03 | 0.43 | 0.29 | 0.00 | −0.01 | 0.10 | 0.44 | 0.65 | 0.34 | −0.01 | 0.53 | 0.08 | 0.22 | 0.01 | |
5. | CUL | −0.11 | 0.89 | 0.94 | 0.98 | 0.98 | 0.97 | 0.99 | 0.12 | 0.11 | 0.17 | −0.04 | 0.44 | 0.29 | 0.00 | −0.02 | 0.10 | 0.45 | 0.66 | 0.34 | −0.01 | 0.54 | 0.08 | 0.23 | 0.01 | |
6. | DEM | −0.09 | 0.91 | 0.90 | 0.96 | 0.96 | 0.96 | 0.95 | 0.12 | 0.11 | 0.15 | −0.04 | 0.41 | 0.28 | −0.01 | −0.02 | 0.09 | 0.42 | 0.64 | 0.34 | −0.02 | 0.51 | 0.08 | 0.22 | 0.00 | |
7. | KNO | −0.09 | 0.78 | 0.89 | 0.92 | 0.93 | 0.88 | 0.96 | 0.11 | 0.09 | 0.16 | −0.04 | 0.43 | 0.28 | −0.01 | −0.02 | 0.09 | 0.43 | 0.63 | 0.34 | −0.01 | 0.51 | 0.07 | 0.22 | 0.00 | |
8. | GEO | −0.10 | 0.81 | 0.90 | 0.96 | 0.97 | 0.92 | 0.93 | 0.11 | 0.12 | 0.18 | −0.04 | 0.46 | 0.29 | 0.00 | −0.02 | 0.11 | 0.46 | 0.67 | 0.33 | −0.01 | 0.54 | 0.08 | 0.24 | 0.01 | |
9. | FOREIGN | −0.05 | 0.14 | 0.16 | 0.16 | 0.16 | 0.14 | 0.16 | 0.16 | 0.09 | 0.04 | −0.08 | 0.08 | 0.05 | 0.00 | −0.06 | 0.04 | 0.07 | 0.09 | 0.02 | 0.02 | 0.08 | 0.00 | 0.02 | 0.01 | |
10. | CASH | −0.26 | 0.05 | 0.03 | 0.05 | 0.05 | 0.05 | 0.02 | 0.05 | 0.07 | 0.07 | −0.44 | 0.16 | 0.07 | −0.06 | −0.07 | 0.48 | −0.08 | 0.10 | 0.02 | 0.04 | −0.04 | 0.08 | −0.21 | −0.02 | |
11. | INTANG | −0.11 | 0.11 | 0.14 | 0.14 | 0.15 | 0.12 | 0.14 | 0.17 | 0.04 | 0.12 | 0.02 | 0.08 | 0.06 | −0.03 | −0.05 | 0.19 | 0.19 | 0.04 | 0.03 | 0.04 | 0.32 | 0.11 | −0.05 | −0.04 | |
12. | LEV | 0.25 | 0.02 | 0.03 | 0.03 | 0.02 | 0.03 | 0.02 | 0.03 | −0.08 | −0.36 | 0.07 | −0.24 | 0.08 | 0.09 | 0.20 | −0.19 | 0.17 | −0.08 | 0.02 | −0.08 | 0.14 | 0.18 | 0.16 | 0.11 | |
13. | RD | −0.17 | 0.19 | 0.26 | 0.25 | 0.27 | 0.22 | 0.26 | 0.29 | 0.06 | 0.12 | 0.13 | −0.18 | 0.09 | 0.01 | 0.01 | 0.17 | 0.14 | 0.49 | 0.15 | −0.02 | 0.26 | 0.00 | 0.31 | 0.00 | |
14. | EQLNE | −0.06 | 0.08 | 0.10 | 0.10 | 0.11 | 0.11 | 0.09 | 0.10 | 0.06 | 0.15 | 0.01 | −0.02 | 0.00 | −0.02 | −0.03 | 0.02 | 0.33 | 0.16 | 0.11 | 0.00 | 0.30 | 0.02 | −0.02 | 0.08 | |
15. | NOL | 0.09 | −0.01 | 0.00 | 0.00 | 0.00 | −0.01 | −0.01 | 0.00 | 0.00 | −0.06 | −0.02 | 0.08 | 0.01 | −0.01 | 0.06 | −0.06 | −0.03 | 0.02 | −0.01 | −0.10 | −0.01 | −0.08 | 0.03 | 0.12 | |
16. | LOSSINT | 0.12 | −0.02 | −0.05 | −0.03 | −0.04 | −0.03 | −0.04 | −0.03 | −0.05 | −0.04 | −0.02 | 0.17 | 0.00 | −0.01 | 0.05 | −0.11 | −0.14 | 0.04 | −0.01 | −0.09 | −0.11 | 0.04 | 0.13 | 0.19 | |
17. | CFO | −0.25 | 0.04 | 0.07 | 0.07 | 0.07 | 0.06 | 0.06 | 0.08 | 0.03 | 0.58 | 0.20 | −0.18 | 0.12 | 0.05 | −0.05 | −0.07 | 0.06 | 0.10 | 0.00 | 0.06 | 0.15 | 0.11 | −0.14 | 0.00 | |
18. | MV | 0.07 | 0.43 | 0.47 | 0.50 | 0.51 | 0.47 | 0.47 | 0.50 | 0.07 | −0.10 | 0.12 | 0.18 | 0.10 | 0.11 | −0.03 | −0.16 | 0.04 | 0.23 | 0.12 | 0.07 | 0.84 | 0.02 | 0.07 | −0.01 | |
19. | DISC | −0.16 | 0.51 | 0.51 | 0.51 | 0.54 | 0.52 | 0.47 | 0.49 | 0.09 | 0.06 | 0.03 | −0.08 | 0.35 | 0.09 | 0.02 | 0.03 | 0.06 | 0.22 | 0.25 | −0.04 | 0.29 | 0.07 | 0.31 | 0.04 | |
20. | THAV | −0.05 | 0.28 | 0.23 | 0.22 | 0.25 | 0.25 | 0.21 | 0.21 | 0.02 | 0.01 | 0.01 | 0.02 | 0.12 | 0.07 | −0.01 | −0.01 | −0.01 | 0.13 | 0.25 | −0.02 | 0.13 | 0.02 | 0.10 | 0.03 | |
21. | EM | 0.05 | 0.01 | 0.01 | 0.00 | 0.00 | −0.01 | 0.00 | 0.00 | 0.02 | 0.05 | 0.04 | −0.08 | 0.00 | −0.02 | −0.10 | −0.08 | 0.05 | 0.07 | −0.04 | −0.02 | 0.05 | 0.03 | −0.06 | −0.04 | |
22. | EMP | 0.00 | 0.50 | 0.55 | 0.57 | 0.58 | 0.55 | 0.54 | 0.56 | 0.09 | −0.06 | 0.17 | 0.14 | 0.18 | 0.08 | −0.01 | −0.11 | 0.12 | 0.85 | 0.30 | 0.13 | 0.04 | 0.05 | 0.06 | −0.03 | |
23. | △SALE | −0.08 | 0.05 | 0.02 | 0.03 | 0.03 | 0.03 | 0.02 | 0.03 | 0.00 | 0.17 | 0.12 | 0.26 | 0.05 | 0.03 | −0.06 | 0.02 | 0.12 | 0.01 | 0.01 | 0.00 | 0.01 | 0.03 | 0.10 | 0.01 | |
24. | INVINT | −0.04 | 0.07 | 0.07 | 0.07 | 0.08 | 0.07 | 0.07 | 0.09 | 0.01 | −0.24 | −0.06 | 0.23 | 0.13 | −0.03 | 0.02 | 0.09 | −0.27 | 0.02 | 0.18 | 0.05 | −0.06 | −0.02 | 0.15 | 0.07 | |
25. | TAGG | 0.04 | 0.00 | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.01 | −0.01 | −0.03 | 0.11 | 0.03 | 0.10 | 0.12 | 0.20 | 0.02 | −0.01 | 0.04 | 0.03 | −0.04 | −0.03 | 0.02 | 0.05 |
Dependent Variable as STP | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
(A) | (B) | (C) | (D) | (E) | (F) | (G) | ||||||||
ECO | POL | ADM | CUL | DEM | KNO | GEO | ||||||||
Coef. | Z-Statistic | Coef. | Z-Statistic | Coef. | Z-Statistic | Coef. | Z-Statistic | Coef. | Z-Statistic | Coef. | Z-Statistic | Coef. | Z-Statistic | |
Test variables | ||||||||||||||
MDIS | −0.0016 | −2.45 ** | −0.0038 | −3.24 *** | −0.0008 | −2.48 ** | −0.0013 | −3.08 *** | −0.0013 | −2.45 ** | −0.0005 | −2.39 ** | −0.0016 | −1.79 * |
Control variables | ||||||||||||||
FOREIGN | −0.0573 | −0.38 | −0.0447 | −0.30 | −0.0483 | −0.32 | −0.0439 | −0.29 | −0.0507 | −0.34 | −0.0533 | −0.36 | −0.0585 | −0.39 |
CASH | −2.0592 | −7.22 *** | −2.0521 | −7.20 *** | −2.0453 | −7.16 *** | −2.0364 | −7.14 *** | −2.0548 | −7.20 *** | −2.0588 | −7.21 *** | −2.0616 | −7.21 *** |
INTANG | −4.5300 | −4.88 *** | −4.4255 | −4.78 *** | −4.4639 | −4.82 *** | −4.3716 | −4.72 *** | −4.5265 | −4.89 *** | −4.4617 | −4.81 *** | −4.4809 | −4.81 *** |
LEV | 1.9775 | 11.66 *** | 1.9993 | 11.78 *** | 1.9981 | 11.77 *** | 1.9900 | 11.73 *** | 1.9917 | 11.74 *** | 1.9937 | 11.75 *** | 1.9938 | 11.75 *** |
RD | −5.9017 | −2.61 *** | −5.4513 | −2.42 ** | −5.4611 | −2.42 ** | −5.3101 | −2.36 ** | −5.6412 | −2.50 ** | −5.3988 | −2.39 ** | −5.4092 | −2.39 ** |
EQLNE | −37.7528 | −3.78 *** | −36.5221 | −3.68 *** | −36.9489 | −3.71 *** | −36.7507 | −3.70 *** | −36.8856 | −3.71 *** | −37.0901 | −3.73 *** | −37.2339 | −3.73 *** |
NOL | 0.8179 | 7.06 *** | 0.8189 | 7.07 *** | 0.8183 | 7.07 *** | 0.8189 | 7.07 *** | 0.8155 | 7.05 *** | 0.8182 | 7.07 *** | 0.8202 | 7.09 *** |
LOSSINT | 1.4772 | 10.54 *** | 1.4738 | 10.52 *** | 1.4793 | 10.56 *** | 1.4816 | 10.57 *** | 1.4763 | 10.54 *** | 1.4754 | 10.54 *** | 1.4793 | 10.56 *** |
CFO | −7.9952 | −11.35 *** | −8.0010 | −11.37 *** | −8.0012 | −11.36 *** | −8.0139 | −11.38 *** | −8.0011 | −11.36 *** | −7.9866 | −11.34 *** | −7.9573 | −11.31 *** |
MV | 0.6391 | 6.22 *** | 0.6447 | 6.27 *** | 0.6476 | 6.30 *** | 0.6543 | 6.36 *** | 0.6437 | 6.26 *** | 0.6481 | 6.30 *** | 0.6510 | 6.32 *** |
DISC | −0.3043 | −4.13 *** | −0.2925 | −4.02 *** | −0.3114 | −4.29 *** | −0.2871 | −3.89 *** | −0.3080 | −4.21 *** | −0.3179 | −4.41 *** | −0.3319 | −4.62 *** |
THAV | 0.0036 | 0.05 | −0.0048 | −0.06 | −0.0116 | −0.16 | −0.0024 | −0.03 | −0.0073 | −0.10 | −0.0126 | −0.17 | −0.0183 | −0.24 |
EM | 0.5922 | 8.21 *** | 0.5925 | 8.21 *** | 0.5908 | 8.19 *** | 0.5919 | 8.20 *** | 0.5907 | 8.19 *** | 0.5917 | 8.20 *** | 0.5902 | 8.18 *** |
EMP | −0.2888 | −2.58 ** | −0.2679 | −2.39 ** | −0.2860 | −2.55 ** | −0.2689 | −2.40 ** | −0.2872 | −2.56 ** | −0.2947 | −2.64 *** | −0.3122 | −2.81 *** |
△SALE | −1.5661 | −7.82 *** | −1.5858 | −7.91 *** | −1.5789 | −7.88 *** | −1.5825 | −7.90 *** | −1.5748 | −7.87 *** | −1.5873 | −7.92 *** | −1.5820 | −7.90 *** |
INVINT | −2.9199 | −8.42 *** | −2.9278 | −8.44 *** | −2.9156 | −8.41 *** | −2.9079 | −8.38 *** | −2.9202 | −8.42 *** | −2.9100 | −8.39 *** | −2.9077 | −8.39 *** |
TAGG | 0.0323 | 0.56 | 0.0312 | 0.54 | 0.0311 | 0.54 | 0.0304 | 0.52 | 0.0310 | 0.54 | 0.0304 | 0.53 | 0.0306 | 0.53 |
Yd | Yes | Yes | Yes | Yes | Yes | Yes | Yes | |||||||
Id | Yes | Yes | Yes | Yes | Yes | Yes | Yes | |||||||
Intercept | −2.5807 | −7.99 *** | −2.6741 | −8.22 *** | −2.6482 | −8.03 *** | −2.7202 | −8.22 *** | −2.6213 | −8.02 *** | −2.6271 | −8.00 *** | −2.5828 | −7.81 *** |
Pseudo R2 | 0.2110 | 0.2114 | 0.2110 | 0.2113 | 0.2110 | 0.2110 | 0.2107 | |||||||
No. Obs. | 9036 | 9036 | 9036 | 9036 | 9036 | 9036 | 9036 |
Dependent Variable as STP | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
(A) | (B) | (C) | (D) | (E) | (F) | (G) | ||||||||
ECO | POL | ADM | CUL | DEM | KNO | GEO | ||||||||
Coef. | Z-Statistic | Coef. | Z-Statistic | Coef. | Z-Statistic | Coef. | Z-Statistic | Coef. | Z-Statistic | Coef. | Z-Statistic | Coef. | Z-Statistic | |
Test variables | ||||||||||||||
MDIS | −0.0015 | −2.11 ** | −0.0039 | −2.93 *** | −0.0010 | −2.53 ** | −0.0014 | −2.93 *** | −0.0014 | −2.38 ** | −0.0006 | −2.43 ** | −0.0019 | −1.93 * |
Control variables | ||||||||||||||
FOREIGN | 0.0182 | 0.11 | 0.0352 | 0.21 | 0.0333 | 0.19 | 0.0363 | 0.21 | 0.0299 | 0.18 | 0.0271 | 0.16 | 0.0218 | 0.13 |
CASH | −1.2654 | −3.42 *** | −1.2534 | −3.39 *** | −1.2306 | −3.32 *** | −1.2228 | −3.31 *** | −1.2543 | −3.39 *** | −1.2498 | −3.38 *** | −1.2523 | −3.38 *** |
INTANG | −3.3991 | −3.44 *** | −3.3150 | −3.37 *** | −3.3202 | −3.38 *** | −3.2398 | −3.31 *** | −3.4055 | −3.46 *** | −3.3119 | −3.36 *** | −3.3114 | −3.35 *** |
LEV | 2.5429 | 11.56 *** | 2.5799 | 11.70 *** | 2.5782 | 11.69 *** | 2.5712 | 11.67 *** | 2.5682 | 11.66 *** | 2.5731 | 11.67 *** | 2.5669 | 11.65 *** |
RD | −5.7843 | −2.25 ** | −5.3094 | −2.07 ** | −5.2261 | −2.04 ** | −5.0691 | −1.98 ** | −5.4617 | −2.13 ** | −5.1420 | −2.00 ** | −5.1049 | −1.98 ** |
EQLNE | −43.4393 | −3.61 *** | −41.8385 | −3.50 *** | −42.1531 | −3.52 *** | −42.1210 | −3.52 *** | −42.0899 | −3.51 *** | −42.3500 | −3.54 *** | −42.3967 | −3.53 *** |
NOL | 0.8123 | 5.71 *** | 0.8104 | 5.69 *** | 0.8090 | 5.69 *** | 0.8092 | 5.69 *** | 0.8058 | 5.66 *** | 0.8107 | 5.70 *** | 0.8136 | 5.72 *** |
LOSSINT | 1.7843 | 10.03 *** | 1.7786 | 10.00 *** | 1.7869 | 10.05 *** | 1.7872 | 10.05 *** | 1.7819 | 10.02 *** | 1.7813 | 10.02 *** | 1.7904 | 10.07 *** |
CFO | −11.8795 | −12.50 *** | −11.9075 | −12.55 *** | −11.9303 | −12.55 *** | −11.9374 | −12.57 *** | −11.9104 | −12.53 *** | −11.8990 | −12.53 *** | −11.8516 | −12.49 *** |
MV | 0.6529 | 4.69 *** | 0.6607 | 4.74 *** | 0.6668 | 4.79 *** | 0.6792 | 4.87 *** | 0.6608 | 4.74 *** | 0.6702 | 4.81 *** | 0.6759 | 4.84 *** |
DISC | −0.2709 | −3.21 *** | −0.2589 | −3.09 *** | −0.2681 | −3.20 *** | −0.2499 | −2.95 *** | −0.2687 | −3.20 *** | −0.2744 | −3.29 *** | −0.2846 | −3.42 *** |
THAV | 0.0425 | 0.53 | 0.0323 | 0.40 | 0.0289 | 0.36 | 0.0343 | 0.43 | 0.0321 | 0.40 | 0.0293 | 0.37 | 0.0251 | 0.32 |
EM | 0.6207 | 6.88 *** | 0.6203 | 6.88 *** | 0.6185 | 6.86 *** | 0.6192 | 6.87 *** | 0.6180 | 6.85 *** | 0.6200 | 6.88 *** | 0.6184 | 6.86 *** |
EMP | −0.2737 | −1.78 * | −0.2420 | −1.58 | −0.2544 | −1.65 * | −0.2408 | −1.57 | −0.2626 | −1.71 * | −0.2712 | −1.78 * | −0.2946 | −1.94 * |
△SALE | −2.0796 | −8.13 *** | −2.1034 | −8.21 *** | −2.0979 | −8.18 *** | −2.1016 | −8.20 *** | −2.0909 | −8.16 *** | −2.1067 | −8.21 *** | −2.1041 | −8.21 *** |
INVINT | −2.5449 | −4.95 *** | −2.5845 | −5.02 *** | −2.5499 | −4.96 *** | −2.5456 | −4.95 *** | −2.5632 | −4.98 *** | −2.5378 | −4.93 *** | −2.5182 | −4.90 *** |
TAGG | −0.0408 | −0.57 | −0.0429 | −0.60 | −0.0424 | −0.59 | −0.0443 | −0.62 | −0.0424 | −0.59 | −0.0431 | −0.60 | −0.0429 | −0.60 |
Yd | Yes | Yes | Yes | Yes | Yes | Yes | Yes | |||||||
Id | Yes | Yes | Yes | Yes | Yes | Yes | Yes | |||||||
Intercept | −3.3268 | −7.93 *** | −3.4657 | −8.19 *** | −3.4837 | −8.05 *** | −3.5661 | −8.19 *** | −3.4186 | −8.02 *** | −3.4540 | −8.03 *** | −3.4007 | −7.82 *** |
Pseudo R2 | 0.2169 | 0.2175 | 0.2171 | 0.2175 | 0.2170 | 0.2171 | 0.2168 | |||||||
No. Obs. | 6295 | 6295 | 6295 | 6295 | 6295 | 6295 | 6295 |
Dependent Variable as STP | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
(A) | (B) | (C) | (D) | (E) | (F) | (G) | ||||||||
ECO | POL | ADM | CUL | DEM | KNO | GEO | ||||||||
Coef. | Z-Statistic | Coef. | Z-Statistic | Coef. | Z-Statistic | Coef. | Z-Statistic | Coef. | Z-Statistic | Coef. | Z-Statistic | Coef. | Z-Statistic | |
Test variables | ||||||||||||||
MDIS | −0.0017 | −2.29 ** | −0.0041 | −2.98 *** | −0.0010 | −2.55 ** | −0.0015 | −3.02 *** | −0.0015 | −2.46 ** | −0.0006 | −2.50 ** | −0.0021 | −2.08 ** |
Control variables | ||||||||||||||
FOREIGN | 0.0429 | 0.25 | 0.0601 | 0.34 | 0.0565 | 0.32 | 0.0612 | 0.35 | 0.0540 | 0.31 | 0.0519 | 0.30 | 0.0452 | 0.26 |
CASH | −1.5615 | −3.92 *** | −1.5434 | −3.88 *** | −1.5264 | −3.82 *** | −1.5117 | −3.79 *** | −1.5510 | −3.89 *** | −1.5484 | −3.88 *** | −1.5470 | −3.87 *** |
INTANG | −3.4333 | −3.42 *** | −3.3378 | −3.34 *** | −3.3461 | −3.36 *** | −3.2516 | −3.27 *** | −3.4390 | −3.44 *** | −3.3356 | −3.33 *** | −3.3238 | −3.32 *** |
LEV | 2.3009 | 9.67 *** | 2.3310 | 9.80 *** | 2.3253 | 9.78 *** | 2.3118 | 9.72 *** | 2.3206 | 9.76 *** | 2.3231 | 9.77 *** | 2.3146 | 9.74 *** |
RD | −4.4439 | −1.71 * | −3.9103 | −1.50 | −3.8572 | −1.48 | −3.6449 | −1.40 | −4.0989 | −1.58 | −3.7606 | −1.44 | −3.6942 | −1.41 |
EQLNE | −43.5555 | −3.54 *** | −42.0518 | −3.44 *** | −42.4080 | −3.46 *** | −42.4238 | −3.47 *** | −42.2548 | −3.45 *** | −42.5828 | −3.47 *** | −42.5565 | −3.46 *** |
NOL | 0.8295 | 5.73 *** | 0.8269 | 5.71 *** | 0.8266 | 5.71 *** | 0.8266 | 5.71 *** | 0.8230 | 5.68 *** | 0.8283 | 5.72 *** | 0.8313 | 5.74 *** |
LOSSINT | 1.7823 | 9.68 *** | 1.7685 | 9.60 *** | 1.7818 | 9.68 *** | 1.7808 | 9.67 *** | 1.7776 | 9.65 *** | 1.7765 | 9.65 *** | 1.7868 | 9.71 *** |
CFO | −11.1816 | −11.43 *** | −11.2163 | −11.48 *** | −11.2323 | −11.47 *** | −11.2502 | −11.50 *** | −11.2110 | −11.45 *** | −11.1970 | −11.45 *** | −11.1539 | −11.41 *** |
MV | 0.8268 | 5.00 *** | 0.8518 | 5.13 *** | 0.8587 | 5.16 *** | 0.8817 | 5.27 *** | 0.8453 | 5.09 *** | 0.8570 | 5.15 *** | 0.8660 | 5.16 *** |
DISC | −0.2534 | −2.91 *** | −0.2427 | −2.81 *** | −0.2546 | −2.95 *** | −0.2336 | −2.68 *** | −0.2543 | −2.94 *** | −0.2600 | −3.03 *** | −0.2691 | −3.14 *** |
THAV | 0.0250 | 0.30 | 0.0128 | 0.16 | 0.0087 | 0.11 | 0.0148 | 0.18 | 0.0127 | 0.16 | 0.0091 | 0.11 | 0.0045 | 0.05 |
EM | 0.6195 | 6.68 *** | 0.6173 | 6.65 *** | 0.6169 | 6.65 *** | 0.6174 | 6.65 *** | 0.6163 | 6.64 *** | 0.6181 | 6.66 *** | 0.6170 | 6.65 *** |
EMP | −0.3538 | −2.23 ** | −0.3289 | −2.08 ** | −0.3434 | −2.17 ** | −0.3270 | −2.07 ** | −0.3502 | −2.21 ** | −0.3583 | −2.28 ** | −0.3800 | −2.43 ** |
△SALE | −2.0468 | −7.83 *** | −2.0724 | −7.92 *** | −2.0628 | −7.88 *** | −2.0651 | −7.89 *** | −2.0569 | −7.86 *** | −2.0726 | −7.91 *** | −2.0688 | −7.91 *** |
INVINT | −2.2724 | −4.35 *** | −2.3035 | −4.40 *** | −2.2708 | −4.34 *** | −2.2603 | −4.32 *** | −2.2912 | −4.38 *** | −2.2601 | −4.32 *** | −2.2401 | −4.29 *** |
TAGG | −0.0643 | −0.88 | −0.0662 | −0.90 | −0.0653 | −0.89 | −0.0672 | −0.91 | −0.0656 | −0.89 | −0.0663 | −0.90 | −0.0660 | −0.90 |
Mills ratio | 0.2512 | 1.79 * | 0.2722 | 1.93 * | 0.2635 | 1.88 * | 0.2638 | 1.88 * | 0.2641 | 1.88 * | 0.2826 | 2.01 ** | 0.2632 | 1.87 * |
Yd | Yes | Yes | Yes | Yes | Yes | Yes | Yes | |||||||
Id | Yes | Yes | Yes | Yes | Yes | Yes | Yes | |||||||
Intercept | −3.9194 | −6.33 *** | −4.1385 | −6.58 *** | −4.1503 | −6.45 *** | −4.3017 | −6.64 *** | −4.0473 | −6.41 *** | −4.0989 | −6.43 *** | −4.0668 | −6.24 *** |
Pseudo R2 | 0.2130 | 0.2136 | 0.2132 | 0.2136 | 0.2131 | 0.2132 | 0.2129 | |||||||
No. Obs. | 5850 | 5850 | 5850 | 5850 | 5850 | 5850 | 5850 |
Dependent Variable as STP | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
(A) | (B) | (C) | (D) | (E) | (F) | (G) | ||||||||
ECO | POL | ADM | CUL | DEM | KNO | GEO | ||||||||
Coef. | Z-Statistic | Coef. | Z-Statistic | Coef. | Z-Statistic | Coef. | Z-Statistic | Coef. | Z-Statistic | Coef. | Z-Statistic | Coef. | Z-Statistic | |
Test variables | ||||||||||||||
MDIS | −0.0021 | −3.15 *** | −0.0051 | −3.85 *** | −0.0012 | −3.16 *** | −0.0017 | −3.63 *** | −0.0017 | −2.97 *** | −0.0008 | −3.03 *** | −0.0023 | −2.35 ** |
MDIS × THAV | 0.0042 | 2.89 *** | 0.0050 | 2.33 ** | 0.0014 | 2.36 ** | 0.0016 | 2.20 ** | 0.0019 | 1.94 * | 0.0009 | 2.21 ** | 0.0028 | 1.86 * |
Control variables | ||||||||||||||
FOREIGN | −0.0702 | −0.47 | −0.0592 | −0.39 | −0.0552 | −0.37 | −0.0522 | −0.35 | −0.0555 | −0.37 | −0.0580 | −0.39 | −0.0635 | −0.42 |
CASH | −2.0747 | −7.26 *** | −2.0644 | −7.24 *** | −2.0647 | −7.22 *** | −2.0519 | −7.19 *** | −2.0701 | −7.25 *** | −2.0740 | −7.26 *** | −2.0781 | −7.27 *** |
INTANG | −4.4693 | −4.79 *** | −4.3905 | −4.74 *** | −4.3571 | −4.70 *** | −4.3211 | −4.67 *** | −4.4609 | −4.80 *** | −4.3958 | −4.74 *** | −4.4160 | −4.75 *** |
LEV | 1.9627 | 11.56 *** | 1.9888 | 11.71 *** | 1.9825 | 11.67 *** | 1.9746 | 11.63 *** | 1.9783 | 11.65 *** | 1.9771 | 11.64 *** | 1.9799 | 11.66 *** |
RD | −6.1340 | −2.70 *** | −5.6469 | −2.49 ** | −5.6448 | −2.49 ** | −5.5331 | −2.44 ** | −5.8438 | −2.58 ** | −5.6369 | −2.48 ** | −5.6388 | −2.48 ** |
EQLNE | −38.9451 | −3.88 *** | −37.2268 | −3.74 *** | −37.5061 | −3.76 *** | −37.3582 | −3.75 *** | −37.3067 | −3.74 *** | −37.4855 | −3.76 *** | −37.6175 | −3.76 *** |
NOL | 0.8191 | 7.07 *** | 0.8247 | 7.11 *** | 0.8217 | 7.10 *** | 0.8224 | 7.10 *** | 0.8178 | 7.06 *** | 0.8199 | 7.08 *** | 0.8233 | 7.11 *** |
LOSSINT | 1.4660 | 10.46 *** | 1.4648 | 10.46 *** | 1.4694 | 10.49 *** | 1.4722 | 10.50 *** | 1.4685 | 10.48 *** | 1.4686 | 10.49 *** | 1.4703 | 10.49 *** |
CFO | −7.9999 | −11.34 *** | −7.9957 | −11.35 *** | −7.9887 | −11.34 *** | −8.0052 | −11.36 *** | −7.9936 | −11.34 *** | −7.9837 | −11.33 *** | −7.9431 | −11.28 *** |
MV | 0.6363 | 6.18 *** | 0.6395 | 6.21 *** | 0.6428 | 6.24 *** | 0.6482 | 6.29 *** | 0.6390 | 6.21 *** | 0.6430 | 6.24 *** | 0.6460 | 6.27 *** |
DISC | −0.2863 | −3.87 *** | −0.2704 | −3.69 *** | −0.2889 | −3.94 *** | −0.2651 | −3.56 *** | −0.2889 | −3.91 *** | −0.2964 | −4.07 *** | −0.3151 | −4.35 *** |
THAV | −0.3084 | −2.32 ** | −0.1772 | −1.67 * | −0.1800 | −1.73 * | −0.1778 | −1.61 | −0.1624 | −1.48 | −0.1561 | −1.57 | −0.1337 | −1.37 |
EM | 0.5967 | 8.26 *** | 0.5953 | 8.25 *** | 0.5935 | 8.22 *** | 0.5947 | 8.24 *** | 0.5930 | 8.22 *** | 0.5937 | 8.23 *** | 0.5920 | 8.20 *** |
EMP | −0.2925 | −2.60 *** | −0.2585 | −2.30 ** | −0.2814 | −2.50 ** | −0.2620 | −2.33 ** | −0.2820 | −2.51 ** | −0.2872 | −2.57 ** | −0.3068 | −2.75 *** |
△SALE | −1.5605 | −7.79 *** | −1.5762 | −7.86 *** | −1.5709 | −7.84 *** | −1.5748 | −7.86 *** | −1.5677 | −7.83 *** | −1.5788 | −7.87 *** | −1.5768 | −7.87 *** |
INVINT | −2.9170 | −8.41 *** | −2.9339 | −8.45 *** | −2.9152 | −8.40 *** | −2.9084 | −8.38 *** | −2.9154 | −8.41 *** | −2.9117 | −8.39 *** | −2.9059 | −8.38 *** |
TAGG | 0.0363 | 0.63 | 0.0349 | 0.60 | 0.0348 | 0.60 | 0.0337 | 0.58 | 0.0340 | 0.59 | 0.0340 | 0.59 | 0.0336 | 0.58 |
Yd | Yes | Yes | Yes | Yes | Yes | Yes | Yes | |||||||
Id | Yes | Yes | Yes | Yes | Yes | Yes | Yes | |||||||
Intercept | −2.5342 | −7.83 *** | −2.6560 | −8.16 *** | −2.6148 | −7.92 *** | −2.6853 | −8.1 *** | −2.5917 | −7.92 *** | −2.5996 | −7.91 *** | −2.5525 | −7.71 *** |
Pseudo R2 | 0.2117 | 0.2119 | 0.2115 | 0.2117 | 0.2113 | 0.2114 | 0.2110 | |||||||
No. Obs. | 9036 | 9036 | 9036 | 9036 | 9036 | 9036 | 9036 |
Dependent Variable as STP | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
(A) | (B) | (C) | (D) | (E) | (F) | (G) | ||||||||
ECO | POL | ADM | CUL | DEM | KNO | GEO | ||||||||
Coef. | Z-Statistic | Coef. | Z-Statistic | Coef. | Z-Statistic | Coef. | Z-Statistic | Coef. | Z-Statistic | Coef. | Z-Statistic | Coef. | Z-Statistic | |
Test variables | ||||||||||||||
MDIS | −0.0009 | −1.39 | −0.0026 | −2.17 ** | −0.0005 | −1.53 | −0.0009 | −2.07 ** | −0.0008 | −1.42 | −0.0003 | −1.38 | −0.0008 | −0.93 |
MDIS × EM | −0.0043 | −3.44 *** | −0.0085 | −3.51 *** | −0.0025 | −3.60 *** | −0.0030 | −3.78 *** | −0.0048 | −4.23 *** | −0.0017 | −3.55 *** | −0.0062 | −3.28 *** |
Control variables | ||||||||||||||
FOREIGN | −0.0400 | −0.27 | −0.0244 | −0.16 | −0.0256 | −0.17 | −0.0218 | −0.15 | −0.0230 | −0.15 | −0.0331 | −0.22 | −0.0402 | −0.27 |
CASH | −2.0630 | −7.22 *** | −2.0762 | −7.27 *** | −2.0572 | −7.19 *** | −2.0506 | −7.18 *** | −2.0703 | −7.24 *** | −2.0747 | −7.26 *** | −2.0720 | −7.24 *** |
INTANG | −4.4366 | −4.78 *** | −4.3037 | −4.63 *** | −4.3601 | −4.69 *** | −4.2555 | −4.58 *** | −4.4228 | −4.76 *** | −4.3568 | −4.67 *** | −4.3633 | −4.66 *** |
LEV | 1.9728 | 11.62 *** | 1.9866 | 11.69 *** | 1.9917 | 11.72 *** | 1.9831 | 11.68 *** | 1.9848 | 11.69 *** | 1.9878 | 11.70 *** | 1.9923 | 11.73 *** |
RD | −5.9119 | −2.61 *** | −5.4779 | −2.43 ** | −5.4937 | −2.44 ** | −5.3384 | −2.37 ** | −5.7158 | −2.53 ** | −5.3981 | −2.39 ** | −5.3721 | −2.37 ** |
EQLNE | −37.6464 | −3.78 *** | −36.3029 | −3.66 *** | −36.6995 | −3.70 *** | −36.5508 | −3.69 *** | −36.7049 | −3.70 *** | −36.9458 | −3.71 *** | −37.0425 | −3.72 *** |
NOL | 0.8169 | 7.06 *** | 0.8148 | 7.05 *** | 0.8154 | 7.05 *** | 0.8154 | 7.06 *** | 0.8145 | 7.05 *** | 0.8166 | 7.06 *** | 0.8161 | 7.06 *** |
LOSSINT | 1.4771 | 10.54 *** | 1.4761 | 10.54 *** | 1.4782 | 10.55 *** | 1.4799 | 10.56 *** | 1.4765 | 10.54 *** | 1.4752 | 10.54 *** | 1.4763 | 10.54 *** |
CFO | −8.0041 | −11.36 *** | −7.9988 | −11.36 *** | −8.0135 | −11.37 *** | −8.0308 | −11.40 *** | −8.0232 | −11.38 *** | −7.9924 | −11.35 *** | −7.9750 | −11.33 *** |
MV | 0.6394 | 6.22 *** | 0.6474 | 6.29 *** | 0.6498 | 6.31 *** | 0.6560 | 6.37 *** | 0.6439 | 6.25 *** | 0.6504 | 6.32 *** | 0.6528 | 6.33 *** |
DISC | −0.2990 | −4.06 *** | −0.2819 | −3.87 *** | −0.2978 | −4.10 *** | −0.2746 | −3.72 *** | −0.2915 | −3.98 *** | −0.3078 | −4.27 *** | −0.3187 | −4.43 *** |
THAV | −0.0016 | −0.02 | −0.0096 | −0.13 | −0.0148 | −0.20 | −0.0070 | −0.09 | −0.0101 | −0.14 | −0.0165 | −0.22 | −0.0218 | −0.29 |
EM | 0.7716 | 8.71 *** | 0.7692 | 8.79 *** | 0.7680 | 8.85 *** | 0.7977 | 8.89 *** | 0.8236 | 9.15 *** | 0.7602 | 8.88 *** | 0.7426 | 8.72 *** |
EMP | −0.2825 | −2.52 ** | −0.2661 | −2.37 ** | −0.2799 | −2.49 ** | −0.2627 | −2.34 ** | −0.2745 | −2.45 ** | −0.2908 | −2.60 *** | −0.3071 | −2.76 *** |
△SALE | −1.5824 | −7.91 *** | −1.5966 | −7.97 *** | −1.5929 | −7.96 *** | −1.5966 | −7.98 *** | −1.5924 | −7.96 *** | −1.5957 | −7.97 *** | −1.5937 | −7.96 *** |
INVINT | −2.9236 | −8.42 *** | −2.9236 | −8.41 *** | −2.9197 | −8.40 *** | −2.9108 | −8.37 *** | −2.9230 | −8.41 *** | −2.9114 | −8.38 *** | −2.9144 | −8.39 *** |
TAGG | 0.0318 | 0.55 | 0.0321 | 0.55 | 0.0327 | 0.56 | 0.0318 | 0.55 | 0.0330 | 0.57 | 0.0313 | 0.54 | 0.0326 | 0.56 |
Yd | Yes | Yes | Yes | Yes | Yes | Yes | Yes | |||||||
Id | Yes | Yes | Yes | Yes | Yes | Yes | Yes | |||||||
Intercept | −2.6258 | −8.11 *** | −2.7055 | −8.30 *** | −2.6952 | −8.15 *** | −2.7677 | −8.34 *** | −2.6849 | −8.19 *** | −2.6688 | −8.11 *** | −2.6210 | −7.91 *** |
Pseudo R2 | 0.2121 | 0.2126 | 0.2122 | 0.2127 | 0.2127 | 0.2122 | 0.2118 | |||||||
No. Obs. | 9036 | 9036 | 9036 | 9036 | 9036 | 9036 | 9036 |
Dependent Variable as STP | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
(A) | (B) | (C) | (D) | (E) | (F) | (G) | ||||||||
ECO | POL | ADM | CUL | DEM | KNO | GEO | ||||||||
Coef. | Z-Statistic | Coef. | Z-Statistic | Coef. | Z-Statistic | Coef. | Z-Statistic | Coef. | Z-Statistic | Coef. | Z-Statistic | Coef. | Z-Statistic | |
Test variables | ||||||||||||||
MDIS | −0.0018 | −2.75 *** | −0.0042 | −3.46 *** | −0.0010 | −2.83 *** | −0.0014 | −3.31 *** | −0.0015 | −2.79 *** | −0.0006 | −2.55 ** | −0.0018 | −1.99 ** |
MDIS × FOREIGN | 0.0033 | 1.79 * | 0.0045 | 1.45 | 0.0014 | 1.75 * | 0.0014 | 1.42 | 0.0022 | 1.68 * | 0.0005 | 0.94 | 0.0020 | 1.00 |
Control variables | ||||||||||||||
FOREIGN | −0.3121 | −1.47 | −0.2297 | −1.14 | −0.2538 | −1.31 | −0.2303 | −1.14 | −0.2604 | −1.32 | −0.1545 | −0.83 | −0.1643 | −0.89 |
CASH | −2.0639 | −7.23 *** | −2.0531 | −7.20 *** | −2.0400 | −7.14 *** | −2.0342 | −7.13 *** | −2.0499 | −7.18 *** | −2.0572 | −7.21 *** | −2.0571 | −7.20 *** |
INTANG | −4.5261 | −4.88 *** | −4.4084 | −4.76 *** | −4.4160 | −4.77 *** | −4.3394 | −4.69 *** | −4.4907 | −4.85 *** | −4.4301 | −4.77 *** | −4.4449 | −4.78 *** |
LEV | 1.9720 | 11.62 *** | 1.9941 | 11.74 *** | 1.9947 | 11.75 *** | 1.9854 | 11.70 *** | 1.9874 | 11.71 *** | 1.9921 | 11.74 *** | 1.9915 | 11.74 *** |
RD | −5.9691 | −2.64 *** | −5.5600 | −2.46 ** | −5.5584 | −2.46 ** | −5.4035 | −2.39 ** | −5.7300 | −2.53 ** | −5.4587 | −2.41 ** | −5.4645 | −2.41 ** |
EQLNE | −37.4549 | −3.74 *** | −36.3572 | −3.66 *** | −36.4827 | −3.66 *** | −36.4160 | −3.66 *** | −36.6020 | −3.67 *** | −36.8859 | −3.70 *** | −36.9514 | −3.70 *** |
NOL | 0.8185 | 7.06 *** | 0.8190 | 7.07 *** | 0.8185 | 7.07 *** | 0.8187 | 7.07 *** | 0.8164 | 7.05 *** | 0.8185 | 7.07 *** | 0.8200 | 7.08 *** |
LOSSINT | 1.4849 | 10.58 *** | 1.4785 | 10.55 *** | 1.4843 | 10.58 *** | 1.4863 | 10.59 *** | 1.4801 | 10.55 *** | 1.4778 | 10.55 *** | 1.4823 | 10.57 *** |
CFO | −7.9952 | −11.34 *** | −8.0040 | −11.37 *** | −8.0080 | −11.36 *** | −8.0178 | −11.38 *** | −8.0066 | −11.36 *** | −7.9903 | −11.35 *** | −7.9615 | −11.31 *** |
MV | 0.6357 | 6.18 *** | 0.6432 | 6.25 *** | 0.6442 | 6.26 *** | 0.6519 | 6.33 *** | 0.6389 | 6.21 *** | 0.6464 | 6.28 *** | 0.6492 | 6.31 *** |
DISC | −0.3008 | −4.08 *** | −0.2876 | −3.95 *** | −0.3029 | −4.16 *** | −0.2802 | −3.79 *** | −0.2999 | −4.09 *** | −0.3132 | −4.34 *** | −0.3264 | −4.53 *** |
THAV | 0.0083 | 0.11 | −0.0044 | −0.06 | −0.0083 | −0.11 | −0.0001 | 0.00 | −0.0033 | −0.04 | −0.0110 | −0.15 | −0.0168 | −0.23 |
EM | 0.5899 | 8.17 *** | 0.5907 | 8.18 *** | 0.5892 | 8.16 *** | 0.5903 | 8.18 *** | 0.5888 | 8.16 *** | 0.5909 | 8.19 *** | 0.5893 | 8.17 *** |
EMP | −0.2859 | −2.55 ** | −0.2665 | −2.38 ** | −0.2807 | −2.50 ** | −0.2654 | −2.36 ** | −0.2802 | −2.50 ** | −0.2919 | −2.61 *** | −0.3089 | −2.78 *** |
△SALE | −1.5623 | −7.80 *** | −1.5815 | −7.89 *** | −1.5749 | −7.86 *** | −1.5785 | −7.87 *** | −1.5702 | −7.84 *** | −1.5856 | −7.90 *** | −1.5801 | −7.89 *** |
INVINT | −2.9274 | −8.44 *** | −2.9298 | −8.44 *** | −2.9136 | −8.40 *** | −2.9070 | −8.38 *** | −2.9185 | −8.41 *** | −2.9100 | −8.39 *** | −2.9058 | −8.38 *** |
TAGG | 0.0302 | 0.52 | 0.0302 | 0.52 | 0.0296 | 0.51 | 0.0290 | 0.50 | 0.0293 | 0.51 | 0.0296 | 0.51 | 0.0298 | 0.51 |
Yd | Yes | Yes | Yes | Yes | Yes | Yes | Yes | |||||||
Id | Yes | Yes | Yes | Yes | Yes | Yes | Yes | |||||||
Intercept | −2.5649 | −7.94 *** | −2.6648 | −8.19 *** | −2.6453 | −8.02 *** | −2.7144 | −8.20 *** | −2.6148 | −8.00 *** | −2.6257 | −8.00 *** | −2.5832 | −7.81 *** |
Pseudo R2 | 0.2113 | 0.2116 | 0.2113 | 0.2115 | 0.2112 | 0.2110 | 0.2108 | |||||||
No. Obs. | 9036 | 9036 | 9036 | 9036 | 9036 | 9036 | 9036 |
© 2019 by the author. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (http://creativecommons.org/licenses/by/4.0/).
Share and Cite
Gu, J. A Potential Risk of Increasing Cross-National Distance: Evidence from Less Sustainable Tax Policies. Sustainability 2019, 11, 2639. https://doi.org/10.3390/su11092639
Gu J. A Potential Risk of Increasing Cross-National Distance: Evidence from Less Sustainable Tax Policies. Sustainability. 2019; 11(9):2639. https://doi.org/10.3390/su11092639
Chicago/Turabian StyleGu, Junjian. 2019. "A Potential Risk of Increasing Cross-National Distance: Evidence from Less Sustainable Tax Policies" Sustainability 11, no. 9: 2639. https://doi.org/10.3390/su11092639