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Table 12 The effect of TRRRCs on tax payments

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

  (1) (2) (3) (4)
Panel A: 2SLS (dependent variable: \(TAX\_PAYMENT\))
\(TRC\) 0.096* 0.097* 0.092** 0.090*
  (0.051) (0.055) (0.046) (0.054)
Polynomial Linear Linear Quadratic Quadratic
Covariates No Yes No Yes
Sample size 2201 2200 4936 3951
Panel B: Sharp RDD (dependent variable: \(TAX\_PAYMENT\))
\(SME\) 0.020*** 0.019*** 0.017** 0.016**
  (0.005) (0.005) (0.007) (0.007)
Polynomial Linear Linear Quadratic Quadratic
Covariates No Yes No Yes
Sample size 3216 3365 3985 3877
  1. \(TRC\) 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. \(TAX\_PAYMENT\) measures tax payments. 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