Table 7

Robustness change of dependent and independent variable

VariablesCorporate profitabilityESG rating bloomberg
(M1)(M2)(M3)(M4)
ROETBQROAROE
ESG0.117*** (0.030)0.411* (0.215)0.002*** (0.000)0.005*** (0.001)
Size0.029*** (0.016)−0.333*** (0.029)0.013*** (0.001)0.030***
(0.004)
Lev−0.278 *** (0.021)−0.584 *** (0.103)−0.147*** (0.005)−0.279*** (0.016)
CAR0.334*** (0.021)0.867*** (0.137)0.180*** (0.008)0.334*** (0.021)
GRW0.078*** (0.003)0.175*** (0.023)0.032*** (0.001)0.078*** (0.003)
Age−0.036 (0.034)1.183*** (0.029)−0.011*** (0.001)−0.001 (0.003)
B_Indp−0.036 (0.034)−0.079 (0.283)−0.014 (0.011)−0.035 (0.034)
Bsize−0.004 (0.013)0.107 (0.089)0.001 (0.004)−0.004 (0.013)
Top10.112*** (0.023)0.502*** (0.160)0.042*** (0.007)0.112*** (0.023)
Duality0.007* (0.004)−0.008 (0.027)0.002* (0.001)0.007 * (0.004)
Bgender0.000* (0.004)0.808*** (0.102)0.000 (0.004)−0.022* (0.012)
Liq0.031*** (0.002)0.013*** (0.001)0.012*** (0.002)0.001*** (0.001)
Constant−0.023*** (0.012)6.799*** (0.647)−0.186*** (0.025)−0.490*** (0.086)
Firm FEYesYesYesYes
Year FEYesYesYesYes
Adjusted R20.1620.0870.2920.162
Obs303303303303

Note(s): The table presents robustness test results where the dependent variables have been changed to ROA (Return on Assets) and Tobin’s Q (TBQ). In the first two columns, ESG ratings from CNRDS are used to assess the impact on firm profitability. In the third column, ESG ratings from Bloomberg are employed to check their impact on firm profitability in terms of ROA and ROE. The p-values, calculated using robust standard errors, are reported in parentheses, with statistical significance indicated by ***, **, and * at the 1%, 5%, and 10% levels, respectively

Source(s): Authors’ own work

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