Table 10 ESG individual components and...

Table 10

ESG individual components and corporate profitability

Variables	(1)	(2)	(3)	(4)	(5)	(6)
	SOCB	Non-SOCB	Joint	Non-joint	Rural	Urban
	ROA	ROA	ROA	ROA	ROA	ROA
Env	−0.002***	0.004***	0.005***	−0.007***	0.003***	−0.006***
Env	(0.001)	(0.002)	(0.002)	(0.004)	(0.002)	(0.002)
Soc	−0.007***	0.012***	0.010***	0.013***	0.015***	0.001
Soc	(0.003)	(0.002)	(0.002)	(0.002)	(0.002)	(0.002)
Gov	−0.005**	−0.004***	0.001*	0.0002*	−0.001**	−0.003***
Gov	(0.003)	(0.001)	(0.001)	(0.001)	(0.001)	(0.001)
Size	0.004***	0.012***	0.003***	0.006***	0.013***	0.006***
Size	(0.002)	(0.001)	(0.001)	(0.002)	(0.001)	(0.002)
Lev	−0.004***	−0.145***	−0.130***	−0.120***	−0.140***	−0.120***
Lev	(0.010)	(0.008)	(0.009)	(0.008)	(0.010)	(0.009)
CAR	0.042**	0.121**	0.170**	0.150**	0.150**	0.120**
CAR	(0.060)	(0.050)	(0.055)	(0.065)	(0.055)	(0.060)
GRW	0.006***	0.038***	0.001***	0.003***	0.034***	0.022***
GRW	(0.005)	(0.004)	(0.004)	(0.0505)	(0.004)	(0.005)
Age	−0.045**	−0.013**	−0.041**	−0.002**	−0.012**	−0.004**
Age	(0.003)	(0.002)	(0.003)	(0.004)	(0.003)	(0.003)
B_Indp	−0.010**	−0.012**	−0.011**	−0.009**	−0.015**	−0.008**
B_Indp	(0.005)	(0.004)	(0.004)	(0.005)	(0.004)	(0.005)
Bsize	0.006	0.002	0.004*	0.001	0.005**	−0.002
Bsize	(0.003)	(0.002)	(0.002)	(0.003)	(0.002)	(0.003)
Top1	0.004***	0.041***	0.081***	0.033***	0.046***	0.030***
Top1	(0.006)	(0.005)	(0.005)	(0.006)	(0.006)	(0.005)
Duality	−0.004	0.005***	0.006**	0.002	0.005***	0.001
Duality	(0.001)	(0.002)	(0.001)	(0.001)	(0.002)	(0.001)
Bgender	0.007***	0.014***	0.012***	0.006***	0.013***	0.006***
Bgender	(0.003)	(0.002)	(0.002)	(0.003)	(0.002)	(0.003)
Liq	0.009***	0.013***	0.014***	0.009**	0.015***	0.006**
Liq	(0.002)	(0.001)	(0.003)	(0.002)	(0.002)	(0.003)
Constant	−0.162***	−0.185***	−0.042***	−0.294***	−0.042***	−0.005***
Constant	(0.006)	(0.008)	(0.009)	(−0.026)	(0.089)	(0.009)
Observations	55	248	96	207	52	100
R-squared	0.921	0.892	0.851	0.882	0.912	0.874
Number of firms	5	37	10	32	10	17
Firm FE	YES	YES	YES	YES	YES	YES
Year FE	YES	YES	YES	YES	YES	YES

Variables	(1)	(2)	(3)	(4)	(5)	(6)
	SOCB	Non-SOCB	Joint	Non-joint	Rural	Urban
	ROA	ROA	ROA	ROA	ROA	ROA
Env	−0.002***	0.004***	0.005***	−0.007***	0.003***	−0.006***
Env	(0.001)	(0.002)	(0.002)	(0.004)	(0.002)	(0.002)
Soc	−0.007***	0.012***	0.010***	0.013***	0.015***	0.001
Soc	(0.003)	(0.002)	(0.002)	(0.002)	(0.002)	(0.002)
Gov	−0.005**	−0.004***	0.001*	0.0002*	−0.001**	−0.003***
Gov	(0.003)	(0.001)	(0.001)	(0.001)	(0.001)	(0.001)
Size	0.004***	0.012***	0.003***	0.006***	0.013***	0.006***
Size	(0.002)	(0.001)	(0.001)	(0.002)	(0.001)	(0.002)
Lev	−0.004***	−0.145***	−0.130***	−0.120***	−0.140***	−0.120***
Lev	(0.010)	(0.008)	(0.009)	(0.008)	(0.010)	(0.009)
CAR	0.042**	0.121**	0.170**	0.150**	0.150**	0.120**
CAR	(0.060)	(0.050)	(0.055)	(0.065)	(0.055)	(0.060)
GRW	0.006***	0.038***	0.001***	0.003***	0.034***	0.022***
GRW	(0.005)	(0.004)	(0.004)	(0.0505)	(0.004)	(0.005)
Age	−0.045**	−0.013**	−0.041**	−0.002**	−0.012**	−0.004**
Age	(0.003)	(0.002)	(0.003)	(0.004)	(0.003)	(0.003)
B_Indp	−0.010**	−0.012**	−0.011**	−0.009**	−0.015**	−0.008**
B_Indp	(0.005)	(0.004)	(0.004)	(0.005)	(0.004)	(0.005)
Bsize	0.006	0.002	0.004*	0.001	0.005**	−0.002
Bsize	(0.003)	(0.002)	(0.002)	(0.003)	(0.002)	(0.003)
Top1	0.004***	0.041***	0.081***	0.033***	0.046***	0.030***
Top1	(0.006)	(0.005)	(0.005)	(0.006)	(0.006)	(0.005)
Duality	−0.004	0.005***	0.006**	0.002	0.005***	0.001
Duality	(0.001)	(0.002)	(0.001)	(0.001)	(0.002)	(0.001)
Bgender	0.007***	0.014***	0.012***	0.006***	0.013***	0.006***
Bgender	(0.003)	(0.002)	(0.002)	(0.003)	(0.002)	(0.003)
Liq	0.009***	0.013***	0.014***	0.009**	0.015***	0.006**
Liq	(0.002)	(0.001)	(0.003)	(0.002)	(0.002)	(0.003)
Constant	−0.162***	−0.185***	−0.042***	−0.294***	−0.042***	−0.005***
Constant	(0.006)	(0.008)	(0.009)	(−0.026)	(0.089)	(0.009)
Observations	55	248	96	207	52	100
R-squared	0.921	0.892	0.851	0.882	0.912	0.874
Number of firms	5	37	10	32	10	17
Firm FE	YES	YES	YES	YES	YES	YES
Year FE	YES	YES	YES	YES	YES	YES

Note(s): This table presents fixed effects regression estimates of the relationship between the environmental (Env), social (Soc), and governance (Gov) components of ESG performance and return on assets (ROA), across different bank categories. All models include firm and year fixed effects. Robust standard errors are shown in parentheses. ***, **, and * indicate significance at the 1%, 5%, and 10% levels, respectively

Source(s): Authors’ own work

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