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The dataset consists of a sample of Finnish limited companies of a particular business
line and industry in 2004. By a filtering procedure, we removed the companies for
which no financial statements data were available to us. Here, we analyze only the
inspected companies because they, unlike the uninspected ones, can be classified
based on the presence of employer’s contribution defaults.1
The inspected companies
consist of three classes: (1) Clean: companies that have been inspected and no defaults
have been found; (2) Employer’s contribution defaults: companies that have
been found with employer’s contribution defaults, and possibly with other tax defaults
too; and (3) Other tax defaults: companies that have been found with other tax defaults
than employer’s contributio
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