Table 7. Co-opted directors and climate...

Table 7.

Co-opted directors and climate risk disclosure – PSM analysis

Panel A: Comparison of treatment and control firms
Dependent variables	N	Treated	N	Control	Differences	t-statistics
Total climate risk disclosure	410	0.102	410	0.121	−0.019**	2.03
Control variables	N	Treated	N	Control	Differences	t-statistics
BGD	410	0.188	410	0.181	0.006	1.01
Ln_BSIZE	410	2.398	410	2.405	−0.007	−0.56
CEO Board Member	410	0.961	410	0.939	0.022	1.44
GOV Index	410	0.615	410	0.623	−0.008	−0.55
ROA	410	0.053	410	0.053	0.000	0.05
Sales Growth	410	0.023	410	0.026	−0.003	−0.36
MTB	410	1.722	410	1.695	0.027	0.50
Ln_Firm Size	410	9.392	410	9.407	−0.015	−0.20
CAPX_AT	410	0.044	410	0.045	−0.001	−0.46
Leverage	410	0.295	410	0.284	0.011	1.01
Cash Holding	410	0.095	410	0.098	−0.003	−0.46
R&D_AT	410	0.011	410	0.013	−0.002	−1.63
M&A	410	0.332	410	0.322	0.010	0.30
Ln FAGE	410	2.218	410	2.085	0.133	1.38
Panel B: Co-opted directors and climate risk disclosure − PSM regression
	Total climate risk disclosure
	(1)		(2)	(3)		(4)
Co-option_t	−0.021** (−2.01)
Co-option (TW)_t			−0.026** (−2.10)
Co-option (Independence)_t				−0.021* (−1.76)
Co-option (TW Independence)_t					−0.028** (−2.09)
All other controls	Yes		Yes	Yes		Yes
State FE	Yes		Yes	Yes		Yes
Industry FE	Yes		Yes	Yes		Yes
Year FE	Yes		Yes	Yes		Yes
Observations	820		820	820		820
Adjusted R²	0.661		0.662	0.661		0.661

Notes:

This table showcases the regression findings concerning the association between co-opted directors and climate risk disclosure using propensity score matching (PSM) methodology. Panel A demonstrates the univariate mean comparisons between the characteristics of treatment and control firms, along with the corresponding t-statistics. Panel B presents the results of PSM regressions conducted on the matched sample. All regressions incorporate controls for the fixed effects of state, industry and years. The t-statistics indicated in the parentheses are computed using standard errors cluster at firm-year. The significance levels are denoted by ***(1% significance level), **(5% significance level) and *(10% significance level)

Source: Developed by the authors

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Panel A: Comparison of treatment and control firms
Dependent variables	N	Treated	N	Control	Differences	t-statistics
Total climate risk disclosure	410	0.102	410	0.121	−0.019**	2.03
Control variables	N	Treated	N	Control	Differences	t-statistics
BGD	410	0.188	410	0.181	0.006	1.01
Ln_BSIZE	410	2.398	410	2.405	−0.007	−0.56
CEO Board Member	410	0.961	410	0.939	0.022	1.44
GOV Index	410	0.615	410	0.623	−0.008	−0.55
ROA	410	0.053	410	0.053	0.000	0.05
Sales Growth	410	0.023	410	0.026	−0.003	−0.36
MTB	410	1.722	410	1.695	0.027	0.50
Ln_Firm Size	410	9.392	410	9.407	−0.015	−0.20
CAPX_AT	410	0.044	410	0.045	−0.001	−0.46
Leverage	410	0.295	410	0.284	0.011	1.01
Cash Holding	410	0.095	410	0.098	−0.003	−0.46
R&D_AT	410	0.011	410	0.013	−0.002	−1.63
M&A	410	0.332	410	0.322	0.010	0.30
Ln FAGE	410	2.218	410	2.085	0.133	1.38
Panel B: Co-opted directors and climate risk disclosure − PSM regression
	Total climate risk disclosure
	(1)		(2)	(3)		(4)
Co-option_t	−0.021** (−2.01)
Co-option (TW)_t			−0.026** (−2.10)
Co-option (Independence)_t				−0.021* (−1.76)
Co-option (TW Independence)_t					−0.028** (−2.09)
All other controls	Yes		Yes	Yes		Yes
State FE	Yes		Yes	Yes		Yes
Industry FE	Yes		Yes	Yes		Yes
Year FE	Yes		Yes	Yes		Yes
Observations	820		820	820		820
Adjusted R²	0.661		0.662	0.661		0.661

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