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公司避稅與金字塔結構
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6. Additional Tests
6.1 Weighted Number of Investment Layers
In the main tests, we measure our variable of interest (
LAYER
), the “length” of layers
as the number of the intermediate layers connecting the parent company and the lowest-
tire firms. If firms with multiple chains in the investment structure, we focus on the
longest chain which has the largest number of intermediate layers. The design is based on
the premise that most investment capital is allocated along the longest chain. However this
may not be the case for firms with multiple investment chains. To address this concern, we
create another measure of layer by considering the weight of investment capital in each
chain.
WLAYER
it
=
n
c=1
INV
c
×
LAYER
c
TOTAL_INV
WLAYER
it
is the weighted number of layer for each parent firm;
INV
c
is the amount of
the investment capital in each chain from the parent firm;
LAYER
c
is the number of
investment layers in each chain;
TOTAL_INV
is the amount of total investments in all
subsidiaries for the parent firm.
WLAYER
is calculated as the sum of the number of layers
for each investment chain weighted by the proportion of investment capital in each chain
relative to total investment in the subsidiaries.
Table 7 reports the results. The results show that
WLAYER
is negatively associated
with
GAAP_ETR, CASH_ETR, LT_ETR_3Y
, and
LT_ETR_5Y
. Thus, our results are robust
with alternative measure of layers.
6.2 Tax Incentives
Our results may be driven by high-tech companies, who received great tax credits
under either the Statute for Upgrading Industries before 2010 or the Act for Industry
Innovation from May 2010. The Statute for Upgrading Industries, promulgated on January
1st 1991, acts as one of the Government’s most important industrial technology policy
implementations. According to Article 6 of the Statute for Upgrading Industries relates to
the investment tax credits, a firm can enjoy investment tax credit by the amount of 5-20
percent of its investment in five categories: (1) automatic equipments and technology, (2)
environment-friendly equipments and technology, (3) energy-efficient equipments and
technology, (4) the investment tax credit according to 35% of their investment in R&D,