Alternative ESG disclosure measure
| Variables | (1) | (2) | (3) | (4) |
|---|---|---|---|---|
| Adjusted ESG | Adjusted E | Adjusted S | Adjusted G | |
| Retire | −0.159*** (−3.821) | −0.286 (−1.029) | 0.067 (0.547) | −0.071** (−2.983) |
| Tobin’s Q | 0.055** (2.348) | 0.193 (1.683) | 0.111** (2.682) | 0.024* (1.844) |
| ROA | −0.121 (−0.746) | 0.352 (0.403) | 0.127 (0.238) | −0.121 (−0.964) |
| Tangi | −0.101 (−0.775) | −0.405 (−1.055) | 0.001 (0.003) | −0.097 (−0.830) |
| Grow | 0.002 (0.051) | 0.085 (0.380) | −0.004 (−0.048) | −0.007 (−0.250) |
| Lev | −0.499*** (−4.303) | −2.295** (−2.812) | −0.863** (−2.898) | −0.231* (−1.842) |
| Size | 0.149*** (6.011) | 0.612*** (5.256) | 0.236*** (3.286) | 0.037* (1.989) |
| Age | −0.015 (−0.508) | 0.104 (1.038) | 0.053 (0.706) | −0.002 (−0.065) |
| Board | 0.063 (1.707) | 0.393 (1.419) | 0.230* (1.906) | 0.032 (0.740) |
| Female | 0.190** (2.873) | 1.260** (3.111) | 0.232 (0.499) | 0.059 (0.933) |
| Indep | 0.244* (2.155) | 1.134*** (4.639) | 0.195 (0.635) | 0.184 (1.514) |
| InsInvestor | −0.151*** (−4.063) | −0.474* (−2.224) | −0.097 (−1.103) | −0.125** (−3.172) |
| Ar | −0.044*** (−4.144) | −0.103 (−1.374) | −0.035 (−0.804) | −0.031** (−2.411) |
| Constant | −1.023*** (−4.378) | −5.276*** (−5.035) | −2.250*** (−3.776) | −0.208 (−0.907) |
| Industry FE | Yes | Yes | Yes | Yes |
| Year FE | Yes | Yes | Yes | Yes |
| Observations | 514 | 514 | 514 | 514 |
| Adjusted R-squared | 0.312 | 0.343 | 0.126 | 0.066 |
| Variables | (1) | (2) | (3) | (4) |
|---|---|---|---|---|
| −0.159 | −0.286 (−1.029) | 0.067 (0.547) | −0.071 | |
| 0.055 | 0.193 (1.683) | 0.111 | 0.024 | |
| −0.121 (−0.746) | 0.352 (0.403) | 0.127 (0.238) | −0.121 (−0.964) | |
| −0.101 (−0.775) | −0.405 (−1.055) | 0.001 (0.003) | −0.097 (−0.830) | |
| 0.002 (0.051) | 0.085 (0.380) | −0.004 (−0.048) | −0.007 (−0.250) | |
| −0.499 | −2.295 | −0.863 | −0.231 | |
| 0.149 | 0.612 | 0.236 | 0.037 | |
| −0.015 (−0.508) | 0.104 (1.038) | 0.053 (0.706) | −0.002 (−0.065) | |
| 0.063 (1.707) | 0.393 (1.419) | 0.230 | 0.032 (0.740) | |
| 0.190 | 1.260 | 0.232 (0.499) | 0.059 (0.933) | |
| 0.244 | 1.134 | 0.195 (0.635) | 0.184 (1.514) | |
| −0.151 | −0.474 | −0.097 (−1.103) | −0.125 | |
| −0.044 | −0.103 (−1.374) | −0.035 (−0.804) | −0.031 | |
| −1.023 | −5.276 | −2.250 | −0.208 (−0.907) | |
| Industry | Yes | Yes | Yes | Yes |
| Year | Yes | Yes | Yes | Yes |
| Observations | 514 | 514 | 514 | 514 |
| Adjusted | 0.312 | 0.343 | 0.126 | 0.066 |
Table 5 uses the industry adjusted ESG scores (a firm’s ESG score subtracts the average score of ESG disclosure of a sector to which the firm belongs in a given year) and same format of environmental, social and governance scores to instead of the natural logarithm of one plus original score. Other variables are defined as in Appendix 1. We estimate the regression with industry and year fixed effects. The standard errors in parentheses are clustered at industry level. Continuous variables are winsorised at the 1st and 99th percentiles. *, ** and *** denote significance at the 10, 5 and 1% levels, respectively
Sharing content requires targeting cookies to be enabled. Please update your cookie preferences to use this feature.