This table presents the results of the association between RDI and EIS and the moderating effect of ESGS on this association using the Two-stage least squares (2SLS) model. The instrumental variables are: (1) IV1, which is the industry–year mean of ESGS and RDI and (2) IV2, which is the ESGS and RDI values recorded when the firm enters the sample. The under-identification test tests whether the instruments are relevant enough to identify the endogenous variables in our 2SLS model under the null hypothesis that the model is under-identified (instruments are not relevant). The Cragg–Donald Wald F-statistic is used to test for weak instruments in our regression models. A higher F-statistic indicates stronger instruments. According to Stock and Yogo (2005), an F-statistic above the critical value (19.93 in this case) suggests that the instruments are not weak. The Hansen overidentification test is conducted to assess instrument validity. All regressions are estimated with clustered robust standard errors by firm. DV = dependent variable. The t-statistics are reported in parentheses. Superscript *, ** and *** indicate significance at 10, 5 and 1% levels, respectively. Table 2 presents the definitions of variables