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Table 10 Effects of TRRRCs on financing constrains and cash dependence

From: Does access to credit reduce SMEs’ tax avoidance? Evidence from a regression discontinuity design

  \(SA\) \(CASH\)
  (1) (2) (3) (4)
Panel A: 2SLS (dependent variable: \(SA\) or \(CASH\))
\(TRC\) − 0.479* − 0.782** − 0.426* − 0.345*
  (0.282) (0.400) (0.246) (0.200)
Polynomial Linear Quadratic Linear Quadratic
Covariates Yes No Yes No
Sample size 2394 4680 2141 4562
Panel B: Sharp RDD (dependent variable: \(SA\) or \(CASH\))
\(SME\) − 0.052*** − 0.117*** − 0.070*** − 0.059**
  (0.012) (0.044) (0.023) (0.029)
Polynomial Linear Quadratic Linear Quadratic
Covariates Yes No Yes No
Sample size 4785 5190 2978 4588
  1. Panel A presents fuzzy RDD results based on an IV framework. Panel B represents sharp RDD results. The dependent variable \(SA\) measures Financial constraint and \(CASH\) measures cash dependence. \(TRC\) is an indicator variable that is equal to one if the firm's bank loan raise after TRRRCs. \(SME\) is an indicator variable that is equal to one if the firm's operation revenue was below the threshold of operation revenue. The discontinuity estimates are based on local linear/quadratic regressions. Standard errors are in the parentheses. *, **, and *** represent statistical significance level at the 1%, 5% and 10% levels, respectively