This table provides results of the analysis of the role of tax avoidance on returns. The dependent variables are Cumulative abnormal returns.
The authors state: "Economically, a 1-standard-deviation increase in tax avoidance is associated with a 0.75% (=26.2%*2.859%) more negative firm value response in Column 1".
My question is where is "26.2%" coming from? The figures in parentheses are t -statistics, and they do not report standard deviation but I assume -2.859 corresponds to one standard deviation in tax avoidance ("Tax variable"). Then why do the authors multiply the coefficient -2.859 by "26.2%"???
I'd really appreciate any help in interpreting this result.
Paper: The Value of Offshore Secrets: Evidence from the Panama Papers
0 Response to Interpreting results: 1-standard-deviation increase in an explanatory variable
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