Table 7.

Exogenous shock effect of the global financial crisis and Paris Agreement

 (1)(2)
VariableESGCESGC
PRisk3.1688** (2.4084)1.3606*** (2.9992)
Post GFC5.4950*** (3.9326)
PRisk*Post GFC−2.3301* (−1.7413)
Post Paris−2.7753** (−2.4039)
PRisk*Post Paris−0.6154 (−1.1336)
Constant−113.7765*** (−11.6140)−109.2095*** (−11.6876)
ControlsYesYes
Industry effectsYesYes
Country effectsYesYes
Observations11,03511,887
Adj R20.2310.233
Note(s):

This table reports the exogenous shock effect of the global financial crisis (GFC) and the Paris Agreement on the relationship between political risk and ESG controversies. This demonstrates the interaction effect of the global crisis with political risk on ESG controversies and the interaction effect of the Paris Agreement with political risk on ESG controversies. Column (1) depicts the results of the GFC interaction effect with PRisk on ESGC for the full sample. Column (2) reports the interaction effect of Paris with PRisk on ESGC for the full sample. Coefficients with ***, ** and * are significant at the 0.01, 0.05 and 0.10 levels, respectively. Robust t-statistics in parentheses

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