Table 5 Robustness test Alternative...

Table 5

Robustness test

	Alternative measurement method			Entropy balance method	Instrumental variable method
	(1)	(2)	(3)	(4)	(5)	(6)
	Spread_new	Spread_new	Spread	Spread	CDT	Spread
CDT		−0.082*		−0.187***		−0.703***
CDT		(−1.71)		(−7.20)		(−4.76)
CDT_new	−0.019***		−0.015***
CDT_new	(−4.23)		(−4.12)
Leverage	0.537	0.550	0.222	−0.232	−1.236	2.810***
Leverage	(1.04)	(1.00)	(0.47)	(−0.21)	(−1.61)	(4.36)
Size	−0.107***	−0.106**	−0.121***	0.012	0.213***	−0.104**
Size	(−2.65)	(−2.58)	(−3.23)	(0.32)	(4.20)	(−2.51)
Turnover	0.020	0.029	−0.011	−0.009	0.019	0.034*
Turnover	(0.92)	(1.17)	(−0.65)	(−0.57)	(0.97)	(1.75)
ROE	−0.288	−0.732	−0.190	−2.408	3.785**	−4.933*
ROE	(−0.13)	(−0.32)	(−0.10)	(−1.36)	(1.97)	(−1.94)
SOE	0.043	0.001	0.066	−0.010	−0.296**	−0.444***
SOE	(0.39)	(0.01)	(0.71)	(−0.16)	(−2.55)	(−3.82)
Redeemable	0.382***	0.339***	0.107	0.113	0.001	0.066
Redeemable	(3.05)	(2.59)	(1.25)	(1.23)	(0.01)	(0.61)
Rating	−0.192***	−0.190***	−0.091**	−0.050	−0.023	−0.117**
Rating	(−3.55)	(−3.48)	(−2.04)	(−1.21)	(−0.73)	(−2.51)
Amount	0.008	0.005	0.000	−0.016**	−0.008	0.008
Amount	(1.35)	(0.76)	(0.01)	(−2.26)	(−0.75)	(1.11)
Maturity	−0.228***	−0.249***	−0.011	−0.098***	−0.000	0.049*
Maturity	(−5.75)	(−6.48)	(−0.49)	(−3.03)	(−0.01)	(1.68)
GDP	−0.012	−0.009	−0.035*	−0.083***	0.008	0.024*
GDP	(−0.63)	(−0.47)	(−1.82)	(−3.46)	(0.38)	(1.75)
IV					0.016***
IV					(2.97)
Constant	4.839***	4.312***	4.919***	1.910***	−2.961*	3.731***
Constant	(4.93)	(4.35)	(5.24)	(2.95)	(−1.87)	(4.11)
Industry	Yes	Yes	Yes	Yes	Yes	Yes
Year	Yes	Yes	Yes	Yes	Yes	Yes
Kleibergen−Paap rk LM statistic	–				26.583
Cragg-Donald Wald F statistic	–				49.095
Stock-Yogo	–				16.380
Observations	526	526	526	526	526	526
Adj. R²	0.411	0.389	0.473	0.563	0.677	0.029

	Alternative measurement method			Entropy balance method	Instrumental variable method
	(1)	(2)	(3)	(4)	(5)	(6)
	Spread_new	Spread_new	Spread	Spread	CDT	Spread
CDT		−0.082*		−0.187***		−0.703***
CDT		(−1.71)		(−7.20)		(−4.76)
CDT_new	−0.019***		−0.015***
CDT_new	(−4.23)		(−4.12)
Leverage	0.537	0.550	0.222	−0.232	−1.236	2.810***
Leverage	(1.04)	(1.00)	(0.47)	(−0.21)	(−1.61)	(4.36)
Size	−0.107***	−0.106**	−0.121***	0.012	0.213***	−0.104**
Size	(−2.65)	(−2.58)	(−3.23)	(0.32)	(4.20)	(−2.51)
Turnover	0.020	0.029	−0.011	−0.009	0.019	0.034*
Turnover	(0.92)	(1.17)	(−0.65)	(−0.57)	(0.97)	(1.75)
ROE	−0.288	−0.732	−0.190	−2.408	3.785**	−4.933*
ROE	(−0.13)	(−0.32)	(−0.10)	(−1.36)	(1.97)	(−1.94)
SOE	0.043	0.001	0.066	−0.010	−0.296**	−0.444***
SOE	(0.39)	(0.01)	(0.71)	(−0.16)	(−2.55)	(−3.82)
Redeemable	0.382***	0.339***	0.107	0.113	0.001	0.066
Redeemable	(3.05)	(2.59)	(1.25)	(1.23)	(0.01)	(0.61)
Rating	−0.192***	−0.190***	−0.091**	−0.050	−0.023	−0.117**
Rating	(−3.55)	(−3.48)	(−2.04)	(−1.21)	(−0.73)	(−2.51)
Amount	0.008	0.005	0.000	−0.016**	−0.008	0.008
Amount	(1.35)	(0.76)	(0.01)	(−2.26)	(−0.75)	(1.11)
Maturity	−0.228***	−0.249***	−0.011	−0.098***	−0.000	0.049*
Maturity	(−5.75)	(−6.48)	(−0.49)	(−3.03)	(−0.01)	(1.68)
GDP	−0.012	−0.009	−0.035*	−0.083***	0.008	0.024*
GDP	(−0.63)	(−0.47)	(−1.82)	(−3.46)	(0.38)	(1.75)
IV					0.016***
IV					(2.97)
Constant	4.839***	4.312***	4.919***	1.910***	−2.961*	3.731***
Constant	(4.93)	(4.35)	(5.24)	(2.95)	(−1.87)	(4.11)
Industry	Yes	Yes	Yes	Yes	Yes	Yes
Year	Yes	Yes	Yes	Yes	Yes	Yes
Kleibergen−Paap rk LM statistic	–				26.583
Cragg-Donald Wald F statistic	–				49.095
Stock-Yogo	–				16.380
Observations	526	526	526	526	526	526
Adj. R²	0.411	0.389	0.473	0.563	0.677	0.029

Note(s): This table reports the robustness test results for the relationship between CDT and green bond financing costs. Columns (1)–(3) use alternative measurements of the main variables; Column (4) reports the entropy balancing result; and Columns (5)–(6) report the instrumental variable estimation results. Definitions of variables are detailed in Table 2. Industry and year fixed effects are controlled in all regressions. Robust t-values are reported in parentheses. *, **, and *** denote significance at the 10%, 5%, and 1% levels, respectively

Source(s): Author’s own work

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