Table 6

GMM estimation results for mediation steps for ESG, (LC), (BRT)

Mediation stepsStep 1 (ESG → BRT)Step 2 (ESG → LC)Step 3 (LC → BRT)Step 4 (ESG → BRT, controlling for LC)
SPCEq. (1)Eq. (2)Eq. (3)Eq. (4)
BRT it-10.472* (0.091)N/A0.363* (0.052)0.508*** (0.004)
ESG it-1−0.022** (0.032)0.060*** (0.003)N/A−0.015* (0.082)
LC it-1N/A0.422* (0.072)−0.113** (0.039)−0.136** (0.021)
SIZE−0.482** (0.013)0.538*** (0.005)−0.323 (0.151)−0.469* (0.060)
CAP−0.100 (0.135)0.139 (0.143)0.150** (0.019)−0.110** (0.025)
GDP−0.025 (0.885)0.088* (0.077)0.028 (0.563)−0.030 (0.385)
INF0.016 (0.483)0.055 (0.252)0.039 (0.508)0.010 (0.650)
BC−0.018** (0.026)0.032 (0.122)−0.025 (0.218)−0.005 (0.772)
BNK1.274* (0.068)2.813** (0.018)0.802 (0.142)0.597* (0.052)
DCOVID0.105 (0.842)0.470 (0.433)−0.206 (0.403)−0.473 (0.308)
AR(1) p-value0.0450.0130.0160.014
AR(2) p-value0.6020.2710.5370.511
Hansen Test (p-value)0.2940.8090.6940.608
Sargan Test (p-value)0.2480.7200.6180.459
Wald Test (p-value)0.0000.0000.0000.000
N62626262

Note(s): Dependent variable varies by equation (BRT in Steps 1, 3, 4; LC in Step 2). Standard errors robust to heteroskedasticity. *, **, and *** denote significance at 10%, 5%, and 1% levels respectively

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