Table 6 Entropy balancing and robust...

Table 6

Entropy balancing and robust regression results

Panel A: Before and after matching										Panel B: Baseline regression after entropy balancing
	Treatment group			Control group
	Before/after matching			Before matching			After matching
Variable	Mean	Variance	Skewness	Mean	Variance	Skewness	Mean	Variance	Skewness	Dep variable: ESGC	Coefficient
MTB	1.740	2.461	3.460	2.357	4.714	2.659	1.740	2.461	3.460	PRisk	1.4761**
LEV	0.260	0.026	0.626	0.234	0.034	0.671	0.26	0.026	0.626		(2.5781)
RD	0.039	0.003	3.614	0.063	0.009	2.746	0.039	0.003	3.614	Constant	24.7453
ROA	0.049	0.009	−2.845	0.014	0.024	−2.547	0.049	0.009	−2.845		(0.8842)
CAPX	4.325	10.06	1.405	3.689	10.73	2.399	4.325	10.06	1.405	Controls	Yes
SIZE	16.83	2.260	−0.436	15.11	2.146	−0.132	16.83	2.26	−0.436	Year effects	Yes
CashVOLT	0.035	0.002	7.488	0.058	0.008	4.538	0.035	0.002	7.488	Country effects	Yes
StockVOLT	2.435	399.1	32.360	3.31	559.9	27.010	2.436	399.2	32.36	Industry effects	Yes
BSIZE	2.449	0.076	0.035	2.226	0.079	0.156	2.449	0.076	0.035	Observations	12,517
GDP	0.960	6.779	−1.111	1.013	7.617	−0.992	0.960	6.779	−1.111	Adj R²	0.0708
INF	1.790	1.460	0.468	1.831	1.694	0.584	1.790	1.460	0.468
UNEMP	6.271	4.468	0.284	5.710	3.836	0.638	6.271	4.468	0.284
CoC	1.423	0.086	−0.680	1.384	0.080	−0.013	1.423	0.086	−0.68
GOVEF	1.496	0.036	−2.961	1.482	0.029	−2.014	1.496	0.036	−2.961
REGQ	1.442	0.043	−0.581	1.448	0.037	−0.408	1.442	0.043	−0.581
EPU	5.005	0.176	0.319	5.071	0.179	0.303	5.005	0.176	0.319

Panel A: Before and after matching										Panel B: Baseline regression after entropy balancing
	Treatment group			Control group
	Before/after matching			Before matching			After matching
Variable	Mean	Variance	Skewness	Mean	Variance	Skewness	Mean	Variance	Skewness	Dep variable: ESGC	Coefficient
MTB	1.740	2.461	3.460	2.357	4.714	2.659	1.740	2.461	3.460	PRisk	1.4761**
LEV	0.260	0.026	0.626	0.234	0.034	0.671	0.26	0.026	0.626		(2.5781)
RD	0.039	0.003	3.614	0.063	0.009	2.746	0.039	0.003	3.614	Constant	24.7453
ROA	0.049	0.009	−2.845	0.014	0.024	−2.547	0.049	0.009	−2.845		(0.8842)
CAPX	4.325	10.06	1.405	3.689	10.73	2.399	4.325	10.06	1.405	Controls	Yes
SIZE	16.83	2.260	−0.436	15.11	2.146	−0.132	16.83	2.26	−0.436	Year effects	Yes
CashVOLT	0.035	0.002	7.488	0.058	0.008	4.538	0.035	0.002	7.488	Country effects	Yes
StockVOLT	2.435	399.1	32.360	3.31	559.9	27.010	2.436	399.2	32.36	Industry effects	Yes
BSIZE	2.449	0.076	0.035	2.226	0.079	0.156	2.449	0.076	0.035	Observations	12,517
GDP	0.960	6.779	−1.111	1.013	7.617	−0.992	0.960	6.779	−1.111	Adj R²	0.0708
INF	1.790	1.460	0.468	1.831	1.694	0.584	1.790	1.460	0.468
UNEMP	6.271	4.468	0.284	5.710	3.836	0.638	6.271	4.468	0.284
CoC	1.423	0.086	−0.680	1.384	0.080	−0.013	1.423	0.086	−0.68
GOVEF	1.496	0.036	−2.961	1.482	0.029	−2.014	1.496	0.036	−2.961
REGQ	1.442	0.043	−0.581	1.448	0.037	−0.408	1.442	0.043	−0.581
EPU	5.005	0.176	0.319	5.071	0.179	0.303	5.005	0.176	0.319

Note(s):

This table reports the covariate balances of entropy balancing. Panel A exhibits the pre- and post-matching mean, variance and skewness of all the covariates in the treatment and control groups. The treatment group is high PRisk firms. Panel B exhibits the results of the re-estimation of the baseline regression after the entropy balancing. Robust t-statistics in parentheses. Coefficients with ***, ** and *are significant at the 0.01, 0.05 and 0.10 levels, respectively. Appendix 1 shows the variable definitions

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