Table 7.

Robustness of industry variation: Propensity score-matched results

VariableCCR
Highly exposed to CCRSlightly exposed to CCR
(1)(2)(3)(4)(5)(6)(7)(8)
TR0.2783*** (3.21)0.1009*** (2.97)0.1102*** (3.14)0.1192*** (3.31)
IR0.2105*** (3.33)0.1015*** (3.23)0.1056*** (3.17)0.0995*** (3.2)
0.1942*** (3.27)0.0981*** (2.95)0.1073*** (3.31)0.0941*** (3.15)
BoGD−0.1022** (−2.89)−0.0928*** (−3.06)
ESG0.1005*** (3.11)0.1391*** (3.25)
Size−0.1331*** (−3.34)−0.1501*** (−3.31)
R&D−0.0707** (−2.43)−0.0807*** (−2.96)
LEV−0.0656 (−1.19)−0.0615* (−1.7)
MTB−0.1029* (−1.69)−0.1101** (−2.28)
PPE0.0751*** (3.17)0.0719*** (3.21)
Sargan test statistic (chi-square, p-value)50.392 (p = 0.0053)42.719 (p = 0.0051)42.452 (p = 0.0061)44.355 (p = 0.006)45.054 (p = 0.0055)43.512 (p = 0.0052)44.679 (p = 0.0054)45.102 (p = 0.0061)
AR(2) (z, p-value)−0.729 (p = 0.3228)−0.591 (p = 0.3209)−0.605 (p = 0.3192)−0.794 (p = 0.3271)−0.459 (p = 0.3301)−0.519 (p = 0.3257)−0.613 (p = 0.3151)−0.677 (p = 0.3205)
Wald test for coefficients15.492 (p < 0.01)13.092 (p < 0.01)13.206 (p < 0.01)15.037 (p < 0.01)13.119 (p < 0.01)13.41 (p < 0.01)13.305 (p < 0.01)15.322 (p < 0.01)
Wald test for time dummies21.216 (p < 0.01)20.529 (p < 0.01)21.045 (p < 0.01)21.109 (p < 0.01)20.592 (p < 0.01)19.899 (p < 0.01)20.212 (p < 0.01)21.315 (p < 0.01)
Wald test for industry dummies23.052 (p < 0.01)22.15 (p < 0.01)23.112 (p < 0.01)23.105 (p < 0.01)22.505 (p < 0.01)20.231 (p < 0.01)22.13 (p < 0.01)23.061 (p < 0.01)
Hansen test (Chi-square, p-value)0.5909 (p = 0.3152)0.5917 (p = 0.3064)0.5775 (p = 0.3025)0.622 (p = 0.3112)0.5872 (p = 0.3051)0.5591 (p = 0.313)0.5873 (p = 0.3041)0.6143 (p = 0.3031)
F test (fisher, p-value)386.2912 (p < 0.01)359.7295 (p < 0.01)362.9057 (p < 0.01)381.039 (p < 0.01)371.3033 (p < 0.01)360.2521 (p < 0.01)361.0271 (p < 0.01)378.552 (p < 0.01)
Number of instruments112
YearYes
FirmYes
Observations4,2263,642
Countries34

Note(s):Highly (slightly) exposed to CCR are industries with CCR measures above (below) the sample mean. CPRI is the Climate Physical Risk Index developed by Guo et al. (2024). BoGD is proxied by the Blau index. 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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