Table 2 Effect of tax information on corporate financial restatements.

This table presents the findings of a multivariate difference-in-differences regression model to assess the impact of tax information on firm financial restatements. The data source is the same as that in Table 1. Columns (1) and (2) show the results of the DID model (1). CTAIS captures the effects of taxation information. Variable definitions are in Supplementary Table 1. Column (3) and (4) reports the parallel test (Bertrand & Mullainathan, 2003) of the introduction of CTAIS-3, where d[t + k], –3 ≤ k ≤ 3, is an indicator variable equal to one for each of the three years before and three years after the launch of the CTAIS-3 system and zero otherwise. d[t + 3] represents the impact of CTAIS-3 system on and after t + 3. d[t − 4], omitted from the model to prevent collinearity, denotes the effect of the CTAIS-3 system on and before t − 4. The t-statistics presented in parentheses are computed using standard errors clustered by firm. All regressions incorporate Firm and Year-fixed effects. Levels of statistical significance are indicated as follows: *** for 1%, ** for 5%, and * for 10%.

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