Table 5. Results of the robustness...

Table 5.

Results of the robustness analyses

Dependent variable	Model 5	Model 6
Dependent variable	CSR controversies score	Sustainability award
CEO duality	0.0637* (0.0347)	−0.0129 (0.0141)
Log(board_size)	0.0536 (0.103)	0.00503 (0.0378)
Sustainability committee	0.0811** (0.0336)	0.0102 (0.0115)
Log(firm_age)	0.0312 (0.0440)	0.0285 (0.0200)
Log(employees)	0.260*** (0.0713)	−0.0623 (0.0488)
Log(ROA)	−0.0714* (0.0416)	0.00339 (0.00975)
Log(Tobin’s Q)	−0.0395 (0.0530)	−0.0443* (0.0248)
Log(leverage)	0.000605 (0.0310)	0.0163* (0.00862)
CSR rating score	0.172*** (0.0600)	−0.00571 (0.00511)
Log(tangability)	−0.00226 (0.0501)	0.0196 (0.0151)
Sales growth	−0.00351 (0.0247)	−0.00415 (0.00992)
$\hat{C S R i n c e n t i v e s}$ (second-stage)	−0.375*** (0.142)
CSR incentives		0.0329* (0.0235)
Complexity	−0.000136 (0.0662)	0.370 (0.341)
CSR incentives×complexity	0.850*** (0.292)	0.376 (0.273)
Munificence	0.0837*** (0.0310)	−0.0501** (0.0221)
CSR incentives×munificence	−0.0922*** (0.0330)	−0.0687** (0.0278)
Dynamism	−0.259*** (0.0856)	0.349 (0.286)
CSR incentives×dynamism	0.258*** (0.0548)	0.335** (0.117)
Constant	−0.926** (0.432)	0.105* (0.189)
Firm-fixed effects	NO	YES
Industry-fixed effects	NO	YES
Year-fixed effects	NO	YES
Observations	2,730	3,865
R-squared	0.403	0.184
Number of firms	658	1,436

Dependent variable	Model 5	Model 6
Dependent variable	CSR controversies score	Sustainability award
CEO duality	0.0637* (0.0347)	−0.0129 (0.0141)
Log(board_size)	0.0536 (0.103)	0.00503 (0.0378)
Sustainability committee	0.0811** (0.0336)	0.0102 (0.0115)
Log(firm_age)	0.0312 (0.0440)	0.0285 (0.0200)
Log(employees)	0.260*** (0.0713)	−0.0623 (0.0488)
Log(ROA)	−0.0714* (0.0416)	0.00339 (0.00975)
Log(Tobin’s Q)	−0.0395 (0.0530)	−0.0443* (0.0248)
Log(leverage)	0.000605 (0.0310)	0.0163* (0.00862)
CSR rating score	0.172*** (0.0600)	−0.00571 (0.00511)
Log(tangability)	−0.00226 (0.0501)	0.0196 (0.0151)
Sales growth	−0.00351 (0.0247)	−0.00415 (0.00992)
$\hat{C S R i n c e n t i v e s}$ (second-stage)	−0.375*** (0.142)
CSR incentives		0.0329* (0.0235)
Complexity	−0.000136 (0.0662)	0.370 (0.341)
CSR incentives×complexity	0.850*** (0.292)	0.376 (0.273)
Munificence	0.0837*** (0.0310)	−0.0501** (0.0221)
CSR incentives×munificence	−0.0922*** (0.0330)	−0.0687** (0.0278)
Dynamism	−0.259*** (0.0856)	0.349 (0.286)
CSR incentives×dynamism	0.258*** (0.0548)	0.335** (0.117)
Constant	−0.926** (0.432)	0.105* (0.189)
Firm-fixed effects	NO	YES
Industry-fixed effects	NO	YES
Year-fixed effects	NO	YES
Observations	2,730	3,865
R-squared	0.403	0.184
Number of firms	658	1,436

Note(s):

This table presents the results of two robustness tests. Model 5 (2SLS) examines CSR incentives’ effect on CSR controversies, showing a reduction, stronger in dynamic environments and weaker in munificent ones. Larger firms and those with higher CSR ratings face more controversies, while profitability reduces them. Model 6 (fixed effects) tests CSR incentives’ effect on sustainability reputation, finding they increase the likelihood of receiving a sustainability award, with the effect amplified in dynamic environments but dampened in munificent settings. Robust standard errors are clustered at the firm level. *, ** and *** denote significance at the 10, 5 and 1% levels, respectively

Source(s): Author’s own creation

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