Table 4.

Robustness of variables’ measurement

VariablePanel (A)Panel (B)Panel (C)
CPRICCRCCR
Model (1)Model (2)PhysicalRegulatoryTransitional
RISK10.1196*** (3.07)0.1097*** (3.41)
RISK20.1181*** (3.25)0.1101*** (3.27)
BoGD (Blau index)−0.1129** (−2.42)−0.1031*** (−3.05)−0.1037*** (−2.99)−0.0956** (−2.15)
BoGD (≥ 3 female directors)−0.1303*** (−3.51)
ESG0.1073** (2.08)0.1014* (1.65)0.1117** (2.45)0.1009* (1.73)
RISK1 × BoGD (Blau index)−0.0839** (−2.27)−0.0863** (−2.36)
RISK2 × BoGD (Blau index)−0.0974** (−2.03)−0.1059** (−2.53)
RISK1 × ESG0.1131* (1.81)0.1121* (1.68)
RISK2 × ESG0.1119** (1.95)0.1191** (2.04)
BoGD (Blau index) × ESG−0.0913** (−2.19)−0.0941** (−2.42)
BoGD(≥ 3 female directors) × ESG−0.1141*** (3.31)
BoGD−0.1444** (−1.95)−0.1277** (−2.24)−0.1181** (−2.23)
ESG0.1021* (1.83)0.105** (2.14)0.0982** (2.2)
BoGD × ESG−0.1065** (−2.11)−0.1033** (−2.09)−0.1101** (−2.39)
Size−0.1121*** (3.14)−0.1183*** (3.21)−0.1019*** (3.33)−0.1127*** (3.15)−0.1143*** (−3.07)−0.1107*** (3.12)−0.1112*** (3.35)−0.1131*** (3.26)
R&D−0.0339** (−1.98)−0.0267* (−1.7)−0.0197** (−2.19)−0.0231** (−2.22)−0.0265* (−1.88)−0.0219* (−1.65)−0.0202* (−1.91)−0.0197* (−1.77)
LEV−0.0187 (−1.44)−0.0162* (−1.69)−0.0151 (−1.51)−0.0149 (−1.33)0.0197* (−1.71)−0.0205 (−1.44)−0.021 (−1.56)−0.0189 (−1.35)
MTB−0.1119* (−1.82)−0.1057* (−1.8)−0.1035* (−1.73)−0.1156* (−1.82)−0.1055* (−1.65)−0.1074** (−2.17)−0.1129* (−1.75)−0.11** (−2.22)
PPE0.0811** (2.09)0.065** (2.21)0.0612** (2.35)0.0651** (2.42)0.0655** (2.39)0.0589** (2.41)0.0627** (2.49)0.0585** (2.55)
Sargan test statistic (Chi-square, p-value)37.223 (p = 0.0059)34.712 (p = 0.0053)33.089 (p = 0.0057)35.172 (p = 0.0055)31.505 (p = 0.0052)34.057 (p = 0.0051)30.835 (p = 0.005)30.791 (p = 0.0053)
AR(2) (z, p-value)−0.5282 (p = 0.3329)−0.4796 (p = 0.3221)−0.5034 (p = 0.3411)−0.5212 (p = 0.3193)−0.5156 (p = 0.3257)−0.6222 (p = 0.3215)−0.6094 (p = 0.3303)−0.5851 (p = 0.3417)
Wald test for coefficients17.331 (p < 0.01)16.511 (p < 0.01)18.217 (p < 0.01)17.619 (p < 0.01)16.258 (p < 0.01)17.225 (p < 0.01)16.302 (p < 0.01)17.115 (p < 0.01)
Wald test for time dummies19.21 (p < 0.01)18.092 (p < 0.01)19.582 (p < 0.01)19.007 (p < 0.01)18.101 (p < 0.01)19.024 (p < 0.01)17.505 (p < 0.01)18.645 (p < 0.01)
Wald test for industry dummies21.049 (p < 0.01)20.122 (p < 0.01)21.034 (p < 0.01)20.211 (p < 0.01)19.631 (p < 0.01)20.115 (p < 0.01)19.429 (p < 0.01)19.28 (p < 0.01)
Hansen test (Chi-square, p-value)0.6539 (p = 0.3021)0.6055 (p = 0.2758)0.6312 (p = 0.3007)0.6505 (p = 0.2922)0.5938 (p = 0.2865)0.6006 (p = 0.3114)0.5771 (p = 0.3053)0.5622 (p = 0.3125)
F test (fisher, p-value)330.4011 (p < 0.01)303.2095 (p < 0.01)311.3173 (p < 0.01)309.3313 (p < 0.01)307.455 (p < 0.01)301.4255 (p < 0.01)306.2025 (p < 0.01)313.5054 (p < 0.01)
Number of instruments112113110112
Xk,itYes
YearYes
FirmYes
Observations10,87410,87410,8744,0263,6063,242
Countries34

Note(s):Models (1) and (2) are as developed in Subsection 3.1. CPRI is the Climate Physical Risk Index developed by Guo et al. (2024). Blau index of diversity =[1-i=1nSi2] where Si is the percentage of board members in each category (two: male/female) and n is the total number of board members. BoGD (≥3 female directors) is a binary that takes 1 if the critical mass of at least three women seating on the board is reached, and 0 otherwise. Physical, regulatory and transitional are dimensions of CCR. t-Values are in parenthesis. Sargan is a test of overidentification. AR(2) is the Blundell–Bond test for second-order autocorrelation. Hansen is a test of over-identifying restrictions under the null hypothesis that all instruments are correlated with the disturbance process. F is the test of the joint significance of all coefficients. Variables’ definitions figure in the  Appendix. Significance levels are represented by ∗∗∗ (1%), ∗∗ (5%) and ∗ (10%)

Source(s): Author’s own work

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