The Sociocultural and Institutional factors influencing Tax Avoidance in sub-Sahara Africa

Figures & data

Table

CETR	Cash effective tax rate	AQ	Audit quality
AETR	Accounting effective tax rate	β0	The constant of the equation
QM	Management quality	β1 to β6	Coefficients of the variables
Culture	Culture of a country	εit	The stochastic error term
RQ	Regulatory quality	i	Firms
Ethics	Ethics	t	Time (the year 2007 to 2020)
GDP	Gross Domestic Products

Table 1. Descriptive statistics

	Obs.	Mean	SD	Max.	Min.
AETR	2104	0.257	0.207	0.35	0.000
CETR	2104	0.203	0.113	0.31	0.000
QM	2075	4.87	0.745	6.00	3.00
Culture	1969	50.37	3.997	62.61	41.72
RQ	2104	4.48	1.073	7.00	3.00
Ethics	2103	3.31	2.285	6.00	3.00
AQ	2104	3.96	1.708	6.00	3.00
GDP ($bl)	2104	57.72	26.714	100.67	26.67

Table 2. Correlation Matrix

	CETR	AETR	QM	Culture	RQ	Ethics	AQ		VIF
CETR	1.000								5.24
AETR	0.793**	1.000							1.77
QM	0.184	−0.369**	1.000						3.95
Culture	0.216***	0.257	−0.093*	1.000					2.64
RQ	−0.109**	−0.121	0.179	0.384**	1.000				2.95
Ethics	0.438	0.417	0.273	0.338	0.173	1.000			4.71
AQ	−0.153*	0.385*	0.106**	−0.219*	0.248**	0.153	1.000		2.44
GDP	0.072**	0.291*	0.182	−0.413	0.368**	0.082	0.337	1.000	3.73

Note: *** = Significance at 0.01; ** = at 0.05 and * = at 0.1, and * = at 0.1

Table 3. Regression Results

Variable	Model 1 (CETR)	Model 2 (AETR)
Management Quality	−0.0829*** (−3.748)	−0.2012** (−2.061)
Culture	0.0772*** (6.092)	0.1428** (2.206)
Regulatory Quality	0.1795** (2.175)	0.1083*** (3.907)
Ethics	0.0282** (2.061)	0.1793*** (3.475)
Audit Quality	−0.1382** (−2.291)	−0.0963* (−1.852)
GDP	−0.1036** (−1.998)	−0.0836* (−1.931)
C	−2.0791*** (−4.826)	−1.9364*** (−3.472)
R-squared	0.8163	0.8252
Adjusted R-squared	0.7856	0.7961
F-statistic	8.3652	6.0427
Prob(F-statistic)	0.0000	0.0000
Prob. of Hausman test	0.0062	0.0017
Durbin-Watson stat	3.6527	4.0526

Note: *** = Significance at 0.01; ** = Significance at 0.05 and * = Significance at 0.1, and * = at 0.1