Table 6

Two-stage least squares analysis

Dependent variable(1)(2)(3)
RegulationLn (1 + dividend)Dividend payout ratio
Google Biodiversity Index0.0004***  
(0.0001)  
BioRegulation −1.7737***−0.3145***
 (0.2436)(0.0553)
PPE to Assets0.0701***1.7453***0.1778***
(0.0061)(0.0644)(0.0139)
CAPEX Ratio−0.0049−0.8089***−0.1478***
(0.0038)(0.1991)(0.0285)
Leverage−0.0017−0.7315***0.0270*
(0.0038)(0.0690)(0.0155)
ROA0.01952.8628***0.3461***
(0.0123)(0.1660)(0.0319)
Firm Size−0.00080.7760***0.0268***
(0.0006)(0.0098)(0.0021)
Market to Book Equity0.0007*−0.0005***−0.0001
(0.0003)(0.0002)(0.0001)
Cash Flow to Assets−0.0088−0.9052***0.0356**
(0.0069)(0.0785)(0.0174)
Net Working Capital−0.0037−0.1960***−0.0090
(0.0049)(0.0725)(0.0175)
Constant0.2003***−4.1418***−0.0946***
(0.0671)(0.0738)(0.0152)
Underidentification test   
Anderson Canon. LM Statistic96.81  
p-value0.000  
Weak identification test   
Cragg-Donald Wald F Statistic106.88  
Observations26,49926,49926,475
R-squared0.15680.35810.0418
Year FEYESYESYES
Industry FEYESYESYES

Note(s): This table shows result for 2-stage Least Squares using Instrumental Variable. Specification 1 shows result for first stage regression using Google Biodiversity Index as instrumental variable. Ln (1 + Dividend) is the dependent variable in specification 2, and Dividend Payout Ratio is the dependent variable in specification 3. Year and industry fixed effects are taken into account in all specifications.  Appendix Table A1 provides an explanation of each variable. Robust standard errors, clustered at the firm level, are in parentheses. Significance at the 1%, 5%, and 10% levels is denoted by the symbols ***, **, and *, respectively

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