Table 6

Baseline regressions of ESG performance on Tobin's Q

Variables(1) FE–DK(2) FE–DK, ESG (t–1)(3) FE–Clustered(4) RE– GLS
ESG Score (centred)0.0009 (1.56)0.0013** (2.89)0.0009 (0.63)0.0021*** (2.69)
Firm size (log assets)−0.001 (−0.01)−0.020 (−0.26)−0.001 (−0.01)−0.178*** (−11.94)
Profitability (ROA)0.039*** (9.16)0.036*** (8.74)0.039*** (7.15)0.047*** (28.49)
Leverage (DTC)0.002 (1.77)0.002 (1.55)0.002 (1.11)0.002*** (3.27)
Price volatility0.009*** (3.46)0.009*** (3.56)0.009* (1.81)0.005** (2.56)
Board gender diversity−0.001 (−1.41)−0.001* (−1.88)−0.001 (−0.55)−0.001 (−0.75)
Board size0.013*** (4.52)0.011*** (3.82)0.013** (2.47)0.007* (1.93)
Firm fixed effectsYesYesYesNo
Year fixed effectsYesYesYesYes
EstimatorFE–DK SEsFE–DK SEsFE–Clustered SEsRE–GLS
Observations5,9365,5055,9365,936
Number of firms430430430430
R2 (within)0.1640.1550.1640.154
R2 (between)–––0.537
R2 (overall)–––0.45
F/χ2 statisticF = 13.32***F = …***F = 13.32***χ2 = 1492.62***

Note(s): Coefficients with t-statistics (FE) and z-statistics (RE) in parentheses. *p < 0.10, **p < 0.05, ***p < 0.01. Year dummies are included but not reported

Source(s): Created by authors

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