Table 8

Mediating Role of LC between ESG and BRT: LSDVC vs. System GMM

Step 1Step 2Step 3Step 4
ESG → BRTESG → LCLC → BRTESG → BRT, controlling LC
SpecAHABBBSys GMMAHABBBSys GMMAHABBBSys GMMAHABBBSys GMM
BRT it-10.4446** (0.0125)0.4598** (0.0118)0.5861*** (0.009)0.4715 * (0.0913)NANANANA0.3421** (0.012)0.2810*** (0.004)0.4392*** (0.001)0.3628 * (0.0524)0.3363* (0.076)0.3419* (0.064)0.4363* (0.059)0.5082 *** (0.0041)
ESG it-1−0.0198** (0.032)−0.0211** (0.030)−0.0207** (0.029)−0.0217 ** (0.0315)0.0554*** (0.005)0.0587*** (0.004)0.0601*** (0.003)0.0598 *** (0.0034)NANANANA−0.0129* (0.081)−0.0135* (0.079)−0.0141* (0.076)−0.0149 * (0.0821)
LC it-1NANANANA0.3244** (0.0423)0.2257* (0.0674)0.3653* (0.0923)0.4215* (0.0723)−0.0983** (0.024)−0.1061** (0.020)−0.1119** (0.019)−0.1126 ** (0.0389)−0.1215** (0.021)−0.1243** (0.020)−0.1310** (0.018)−0.1362 ** (0.0212)
SIZE−0.4417* (0.062)−0.4572* (0.059)−0.4633* (0.058)−0.4824 ** (0.0126)0.5211*** (0.008)0.5326*** (0.006)0.5398*** (0.006)0.5376 *** (0.0052)−0.3075 (0.161)−0.5138 (0.155)−0.4181 (0.150)−0.3227 (0.1514)−0.3024* (0.060)−0.4118* (0.058)−0.4221* (0.057)−0.4693 * (0.0597)
CAP−0.1031 (0.132)−0.1076 (0.129)−0.1098 (0.127)−0.0995 (0.1351)0.1378 (0.146)0.1412 (0.143)0.1427 (0.141)0.1385 (0.1426)−0.1492** (0.019)−0.1510** (0.018)−0.1518** (0.018)−0.1497 ** (0.0192)−0.1095** (0.024)−0.1112** (0.023)−0.1118** (0.023)−0.1096 ** (0.0247)
GDP−0.0261 (0.887)−0.0272 (0.881)−0.0278 (0.876)−0.0248 (0.8853)0.0863* (0.078)0.0881* (0.076)0.0888* (0.076)0.0879 * (0.0765)−0.0292 (0.562)−0.0295 (0.560)−0.0297 (0.559)−0.0281 (0.5629)−0.0307 (0.386)−0.0313 (0.381)−0.0315 (0.379)−0.0304 (0.3854)
INF0.0148 (0.493)0.0151 (0.490)0.0155 (0.488)0.0161 (0.4827)−0.0551 (0.254)−0.0558 (0.253)−0.0561 (0.252)−0.0551 (0.2520)0.0383 (0.507)0.0387 (0.506)0.0389 (0.505)0.0385 (0.5076)0.0101 (0.649)0.0105 (0.647)0.0106 (0.647)0.0103 (0.6499)
BC−0.0168** (0.027)−0.0171** (0.026)−0.0173** (0.025)−0.0181 ** (0.0259)0.0317 (0.123)0.0321 (0.122)0.0324 (0.121)0.0318 (0.1217)−0.0245 (0.217)−0.0247 (0.215)−0.0248 (0.215)−0.0247 (0.2184)−0.0047 (0.771)−0.0049 (0.769)−0.0049 (0.768)−0.0048 (0.7716)
BNK1.2673* (0.070)1.2761* (0.069)1.2815* (0.068)1.2743* (0.0684)2.8212** (0.018)2.8269** (0.018)2.8285** (0.018)2.8129 ** (0.0181)0.8072 (0.141)0.8084 (0.140)0.8091 (0.139)0.8024 (0.1420)0.5975* (0.051)0.5980* (0.050)0.5981* (0.050)0.5968* (0.0521)
DCOVID0.1075 (0.832)0.1081 (0.831)0.1086 (0.835)0.1046 (0.8422)0.4712 (0.434)0.4725 (0.432)0.4741 (0.431)0.4697 (0.4328)−0.2064 (0.401)−0.2070 (0.400)−0.2074 (0.400)−0.2055 (0.4026)−0.4692 (0.306)−0.4698 (0.305)−0.4701 (0.305)−0.4729 (0.3084)
AR(1) p-value0.04530.01280.01590.0138
AR(2) p-value0.60210.27140.53720.5110
Hansen (p-value)0.29410.80920.69360.6078
Sargan (p-value)0.24790.71980.61820.4587
Wald Test (p-value)0.00000.00000.00000.00000.00000.00000.00000.00000.00000.00000.00000.00000.00000.00000.00000.0000
N (banks)62626262626262626262626262626262

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