Table 5

Moderating effect of audit quality on the ESG–firm performance (ROA) relationship

Variables(1)(2)(3)(4)
Moderator (AQ)AbnFeesLnAuditBig4Opinion
ESG0.0002***(0.0001)0.0002***(0.0001)0.0002***(0.0001)−0.0002(0.0004)
Audit Quality (AQ)−0.0111***(0.0009)−0.0270***(0.0023)0.0048(0.0035)0.0792***(0.0054)
ESG × AQ0.0000(0.0001)−0.0001(0.0001)−0.0002(0.0002)0.0004(0.0004)
ControlsYesYesYesYes
Firm FE and Year FEYesYesYesYes
Observations35,06035,06035,06035,060
R-squared0.4970.4970.4920.515

Note(s): Continuous variables used in the interaction terms are mean-centered. Robust standard errors clustered at the firm level are reported in parentheses. ***p < 0.01, **p < 0.05, *p < 0.1

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