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臺大管理論叢
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4. Sample and Descriptive Statistics
4.1 Sample Selection
Using Taiwan Economic Journal (TEJ) database, we focus on firms that are now
listed on the Taiwan Stock Exchange (TWSE) and over-the-counter market (OTC). The
number of initial observations recorded from 2000-2011, excluding financial firms which
have unique industry characteristics and capital structure, amount to 21,725. We exclude
firms that do not issue “Quanxi Business Operation Report” and observations with the
missing value for the control variable, leading to a final sample of 8,244 observations.
4.2 Descriptive Statistics
Table 1 reports the sample descriptive statistics for the variables included in our
empirical models. The mean (median) of the number of the layers is 3.44 (3.00), and the
mean (median) of the number of the investees is 11.45 (7), which indicates that the use of
pyramidal layers is quite common for parent-subsidiary investments. Consistent with prior
studies, the mean (median) value of
GAAP_ETR, CASH_ETR, LT_ETR_3Y
and
LT_
ETR_5Y
is 0.16 (0.17), 0.14 (0.10), 0.14 (0.12), and 0.14 (0.13), respectively. On average,
firms have 3.75 investees in tax havens based on the list of tax haven countries as in
Durnev et al. (2017), and 4.21 investees based on the definition of Dyreng and Lindsey
(2009).