Table 4 Additional analyses.

From: Does the supply of tax information affect financial restatements? Evidence from the launch of Taxation Administration Information System III in China

 

Restate

 

SOEs

Non-SOEs

RateH

RateL

BTDH

BTDL

VARIABLES

(1)

(2)

(3)

(4)

(5)

(6)

Panel A. State-owned Enterprises and Tax Avoidance

CTAIS

−0.026

−0.033**

−0.036***

−0.028

−0.032**

−0.034*

 

(−1.54)

(−2.57)

(−2.77)

(−1.47)

(−2.39)

(−1.76)

Firm Cons

Yes

Yes

Yes

Yes

Yes

Yes

Prov Cons

Yes

Yes

Yes

Yes

Yes

Yes

Firm Fix

Yes

Yes

Yes

Yes

Yes

Yes

Year Fix

Yes

Yes

Yes

Yes

Yes

Yes

Obs

9,797

15,775

16,976

8,724

15,389

10,148

R-squared

0.359

0.465

0.453

0.459

0.457

0.464

 

Restate

 

High-tech

Low-tech

Multination

Local

SizeH

SizeL

VARIABLES

(1)

(2)

(3)

(4)

(5)

(6)

Panel B. High-technology, multinational, and large companies

CTAIS

−0.050***

−0.023*

−0.033**

−0.023

−0.055***

−0.010

 

(−2.76)

(−1.85)

(−2.07)

(−1.61)

(−3.88)

(−0.66)

Firm Cons

Yes

Yes

Yes

Yes

Yes

Yes

Prov Cons

Yes

Yes

Yes

Yes

Yes

Yes

Firm Fix

Yes

Yes

Yes

Yes

Yes

Yes

Year Fix

Yes

Yes

Yes

Yes

Yes

Yes

Obs

8286

17,932

12,184

13,675

12,908

12,983

R-squared

0.442

0.407

0.468

0.414

0.423

0.460

  1. Source: Calculated based on data from the CSMAR database. Data on high-tech industries is obtained from the state government website https://www.stats.gov.cn/sj/tjbz/gjtjbz/202302/P020230213402519726955.pdf.
  2. This table presents additional analyses of the CTAIS-restatement relationship. Panel A examines the heterogeneous effect of CTAIS-3 on corporate financial restatements based on state ownership and the level of tax avoidance. Columns (1) and (2) classify firms based on whether they are state-owned companies, while Columns (3) to (6) break out the sample by the level of corporate tax avoidance. Columns (3) and (4) divide the sample based on the five-year average of the difference between the statutory tax rate as specified by tax law and the actual tax rate paid by the firm (LRATE_diff) (Dyreng et al., 2008). Columns (5) and (6) segment the sample by book-tax-difference (Badertscher et al., 2019). Panel B examines the heterogeneous effect of CTAIS-3 in different industries, firm types, and sizes. Columns (1) and (2) stratify the sample by whether they are in high-tech industries. Columns (3) and (4) split the sample by whether they have overseas affiliated companies. Columns (5) and (6) divide the sample by firm size. The sample used is the same as that in Table 2. All regressions include firm-level and province-level controls, as defined in Table 2. 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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