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Table 5 Effects of TRRRCs on corporate tax avoidance

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

  75% CCTF CCTF 150% CCTF
(1) (2) (3) (4) (5) (6)
Panel A: 2SLS (dependent variable: \(BTD\))
\(TRC\) − 0.318** − 0.324* − 0.264* − 0.206** − 0.248*** − 0.212**
  (0.132) (0.188) (0.139) (0.101) (0.095) (0.097)
Polynomial Linear Quadratic Linear Quadratic Linear Quadratic
Covariates No Yes Yes No No Yes
Sample size 1532 2921 1844 4843 3718 6686
Panel B: Sharp RDD (dependent variable: \(BTD\))
\(SME\) − 0.048*** − 0.048*** − 0.039*** − 0.043*** − 0.042*** − 0.040***
  (0.015) (0.017) (0.012) (0.014) (0.010) (0.012)
Polynomial Linear Quadratic Linear Quadratic Linear Quadratic
Covariates No Yes Yes No No Yes
Sample size 1599 3079 2649 4816 3858 6968
Panel C: 2SLS (dependent variable: \(DDBTD\))
\(TRC\) − 0.257*** − 0.246* − 0.157* − 0.141** − 0.162** − 0.129*
  (0.010) (0.132) (0.091) (0.070) (0.075) (0.075)
Polynomial Linear Quadratic Linear Quadratic Linear Quadratic
Covariates No Yes Yes No No Yes
Sample size 1532 2921 2460 5794 3718 6661
Panel D: Sharp RDD (dependent variable: \(DDBTD\))
\(SME\) − 0.035*** − 0.037** − 0.025** − 0.031*** − 0.028*** − 0.025**
  (0.013) (0.015) (0.010) (0.012) (0.009) (0.010)
Polynomial Linear Quadratic Linear Quadratic Linear Quadratic
Covariates No Yes Yes No No Yes
Sample size 1766 3079 2860 5498 4271 6968
  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. Columns (1) and (2) are based on 75% of CCTF bandwidth, Columns (3) and (4) use CCTF bandwidth, and Columns (5) and (6) use sample firms within 150% of CCTF bandwidth. 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