臺大管理論叢 NTU Management Review VOL.28 NO.1

臺大管理論叢

第

卷第

期

cash equivalents in current year divided by beginning of the year total assets.

INTAN

are the

intangible assets in current year divided by beginning of the year total assets.

is the total

research and development expense divided by beginning of the year total assets.

PPE

is the

ratio of property, plant, and equipment to total assets.

ADV

is the advertising expense in year t

divided by net sale in year t; when missing, reset to 0.

SGA

is selling, general, and

administrative expense in year t divided by net sales in year t; missing values of SGandA are

set to 0.

NUM_INVESTEE

is the number of the investees of the firm.

NUM_TAX_HAVEN

the number of subsidiaries in tax haven countries, based on the list of tax haven countries as

in Durnev et al. (2017) and in Dyreng and Lindsey (2009).

Table 2 presents Pearson and Spearman correlations for our sample of firm-year

observations. Our measure of layers is negatively correlated with our tax avoidance

measures. Specifically,

LAYER

is negatively and significantly correlated with

GAAP_ETR

and

CASH_ETR

. In addition, we note that the four measures of tax avoidance are

significantly correlated. Furthermore,

GAAP_ETR

is negatively correlated with

SIZE

LEV

ROA

, and

PPE

, and positively correlated with

SGA

. The control variables are

also correlated with other measures of tax avoidance.