Robustness checks (1)
| Model (1) | Model (2) | Model (3) | |
|---|---|---|---|
| Dependent variable | Environmental performance | Social performance | Governance performance |
| Independent variables | |||
| Formal institution | 7.0760* (2.7592) | 1.1210 (1.1602) | −1.4896† (0.8324) |
| Informal institution | 4.1087*** (0.8999) | 3.1690** (1.0083) | 5.9758*** (0.6403) |
| Financial market institution | 0.6979 (0.6827) | 0.6960 (0.7106) | 6.6769*** (0.6905) |
| Country-level control variables | |||
| GDP growth | −0.0670 (0.1431) | 0.0920 (0.1380) | −0.1185 (0.0983) |
| Population (log) | 2.5535 (1.6888) | 0.6051 (1.8514) | −5.9946** (2.1159) |
| Unemployment rate | 0.6570*** (0.1366) | 0.3020* (0.1347) | −0.0719 (0.0913) |
| FDI net inflow (log) | −0.9992*** (0.2749) | −0.9805*** (0.2700) | −0.2272 (0.1937) |
| Size of land (log) | −0.9391 (1.2216) | 0.6071 (1.2507) | 4.2526** (1.4948) |
| Labor market efficiency | −0.5651** (0.1872) | −0.4733** (0.1795) | −0.1243 (0.1256) |
| Firm-level control variables | |||
| Return on assets | 0.0361* (0.0144) | 0.0638*** (0.0141) | 0.0177† (0.0099) |
| Total asset | 0.0345*** (0.0009) | 0.0317*** (0.0009) | 0.0167*** (0.0006) |
| Debt ratio | 0.0421*** (0.0096) | −0.0142 (0.0094) | 0.0151* (0.0066) |
| Foreign sales to total sales | 0.0111*** (0.0018) | 0.0124*** (0.0018) | 0.0055*** (0.0012) |
| Constant | 31.6573 (21.1451) | 50.7346* (23.4481) | 88.1420*** (26.0021) |
| Log of random-effects parameter | 2.4155*** (0.1244) | 2.5393*** (0.1146) | 2.7421*** (0.1107) |
| Number of observations | 24,535 | 25,233 | 25,233 |
| Log-likelihood | −115,740.18 | −118,751.40 | −109,808.79 |
| AIC | 231,554.37 | 237,576.80 | 219,691.59 |
| Model (1) | Model (2) | Model (3) | |
|---|---|---|---|
| Dependent variable | Environmental performance | Social performance | Governance performance |
| Formal institution | 7.0760 | 1.1210 (1.1602) | −1.4896† (0.8324) |
| Informal institution | 4.1087 | 3.1690 | 5.9758 |
| Financial market institution | 0.6979 (0.6827) | 0.6960 (0.7106) | 6.6769 |
| −0.0670 (0.1431) | 0.0920 (0.1380) | −0.1185 (0.0983) | |
| Population (log) | 2.5535 (1.6888) | 0.6051 (1.8514) | −5.9946 |
| Unemployment rate | 0.6570 | 0.3020 | −0.0719 (0.0913) |
| −0.9992 | −0.9805 | −0.2272 (0.1937) | |
| Size of land (log) | −0.9391 (1.2216) | 0.6071 (1.2507) | 4.2526 |
| Labor market efficiency | −0.5651 | −0.4733 | −0.1243 (0.1256) |
| Return on assets | 0.0361 | 0.0638 | 0.0177† (0.0099) |
| Total asset | 0.0345 | 0.0317 | 0.0167 |
| Debt ratio | 0.0421 | −0.0142 (0.0094) | 0.0151 |
| Foreign sales to total sales | 0.0111 | 0.0124 | 0.0055 |
| Constant | 31.6573 (21.1451) | 50.7346 | 88.1420 |
| Log of random-effects parameter | 2.4155 | 2.5393 | 2.7421 |
| Number of observations | 24,535 | 25,233 | 25,233 |
| Log-likelihood | −115,740.18 | −118,751.40 | −109,808.79 |
| 231,554.37 | 237,576.80 | 219,691.59 | |
Year and industry fixed effects are included but are not reported here. Multilevel regression with random intercept modelling is used to estimate the results. Standard errors are in parentheses. ***p < 0.001, **p < 0.01, *p < 0.05, †p < 0.10. All explanatory and control variables are lagged by One year to minimize the endogeneity concern. AIC = Akaike information criterion
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