Table 6 Marginal effect (mean derivative, \(\hat{D}_{k}\)) estimates and significance testing results. Linear versus optimal cross-validated ANN results
From: Tax avoidance and earnings management: a neural network approach for the largest European economies
Variable | GAAP_ETR | CASH_ETR | BTD | |||
|---|---|---|---|---|---|---|
Linear | ANN (\(m = 2\)) | Linear | ANN \((m = 1\)) | Linear | ANN (\(m = 1\)) | |
ACCRUALS | 0.0008** (0.0005) | 0.0066*** (0.0321) | 0.0005 (0.0006) | 0.0043*** (0.0209) | 0.0002 (0.0003) | 0.0008 (0.0080) |
SIZE | −0.0057*** (0.0007) | −0.0050*** (0.0361) | 0.0021** (0.0010) | 0.0032 (0.0124) | −0.0009*** (0.0002) | −0.0006*** (0.0012) |
LEV | 0.0725*** (0.0075) | 0.0850*** (0.0324) | 0.0097 (0.0086) | 0.0093*** (0.0246) | 0.0117*** (0.0036) | 0.0105*** (0.0023) |
ROA | −0.1935*** (0.0287) | −0.3432*** (0.0321) | −0.2232*** (0.0407) | −0.3678*** (0.0270) | −0.1090*** (0.0106) | −0.1125*** (0.0135) |
CAPINT | −0.0150** (0.0078) | −0.0084*** (0.0316) | −0.0550*** (0.0099) | −0.0679*** (0.0145) | −0.0033*** (0.0010) | −0.0030*** (0.0005) |
INVINT | 0.0130 (0.0102) | 0.0133*** (0.0279) | −0.0099 (0.0150) | −0.0199** (0.0264) | 0.0008 (0.0017) | 0.0026 (0.0003) |
STR | 0.5212*** (0.0811) | 0.5243*** (0.0454) | 0.2057** (0.1120) | 0.2204*** (0.0252) | −0.0498*** (0.0120) | −0.0473*** (0.0008) |
GROWTH | −0.0045*** (0.0018) | −0.0038*** (0.0259) | −0.0068*** (0.0024) | −0.0075** (0.0152) | 0.0001 (0.0002) | 0.0002 (0.0001) |