ESG Practices and SME financial performance (ROA)
| Variables | Model 1 | Model 2 | Model 3 | Model 4 |
|---|---|---|---|---|
| ESG score (t–1) | 0.031** | – | – | – |
| Environmental score (t–1) | – | 0.028** | – | – |
| Governance score (t–1) | – | – | 0.009 | – |
| Social score (t–1) | – | – | – | 0.012 |
| Firm size | 0.014** | 0.015** | 0.014** | 0.014** |
| Leverage | –0.067*** | –0.066*** | –0.068*** | –0.067*** |
| Firm age | 0.002 | 0.002 | 0.001 | 0.002 |
| Firm FE | Yes | Yes | Yes | Yes |
| Year FE | Yes | Yes | Yes | Yes |
| Observations | 2,850 | 2,850 | 2,850 | 2,850 |
| Adjusted R² | 0.19 | 0.18 | 0.17 | 0.17 |
| Variables | Model 1 | Model 2 | Model 3 | Model 4 |
|---|---|---|---|---|
| 0.031 | – | – | – | |
| Environmental score (t–1) | – | 0.028 | – | – |
| Governance score (t–1) | – | – | 0.009 | – |
| Social score (t–1) | – | – | – | 0.012 |
| Firm size | 0.014 | 0.015 | 0.014 | 0.014 |
| Leverage | –0.067 | –0.066 | –0.068 | –0.067 |
| Firm age | 0.002 | 0.002 | 0.001 | 0.002 |
| Firm | Yes | Yes | Yes | Yes |
| Year | Yes | Yes | Yes | Yes |
| Observations | 2,850 | 2,850 | 2,850 | 2,850 |
| Adjusted R² | 0.19 | 0.18 | 0.17 | 0.17 |
***, ** denote significance at the 1% and 5% levels, respectively. (Standard errors clustered at the firm level)
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