Table 5.

Results of the granger causality test

Variables(1)(2)(3)(4)(5)
RankingRankingRankingRankingRanking
Yt-10.477*** (0.103)0.505*** (0.100)0.442*** (0.0995)0.153 (0.175)0.130 (0.0916)
Yt-20.526*** (0.107)0.432*** (0.102)0.545*** (0.104)0.157 (0.145)0.258*** (0.0935)
Yt-30.196* (0.114)0.167 (0.111)0.205* (0.114)0.0622 (0.0985)
Sustainability performanceSustainability coursesSustainability publicationsCitationsSustainability spinoffsGreen patents
Sustainability performancet-10.0688* (0.0369)7.645** (3.074)0.0523 (0.0457)−0.0721 (0.0714)0.0637** (0.0308)
Sustainability performancet-20.0377 (0.0450)−2.344 (3.303)0.114** (0.0539)−0.0750 (0.0686)0.0868** (0.0362)
Sustainability performancet-3−0.0402 (0.0522)10.86***0.00915 (0.0534)0.0446 (0.0363)
Sizet-10.128*** (0.0495)0.120*** (0.0463)0.137*** (0.0491)0.0875 (0.0740)0.00695 (0.0531)
THE-dummyt-10.214 (0.148)0.180 (0.140)0.207 (0.144)0.0279 (0.181)0.219 (0.139)
STEM-faculty ratiot-10.571 (3.765)0.267 (3.681)0.302 (3.680)2.208 (7.192)1.564 (4.198)
Tuitiont-1−0.0483 (0.196)−0.0829 (0.189)−0.0950 (0.193)−0.177 (0.450)0.0692 (0.207)
Constant−0.746*** (0.143)−0.813*** (0.0790)−0.747*** (0.142)−1.255*** (0.234)−0.956*** (0.171)
Year dummyYesYesYesYesYes
Pseudo R20.650.650.660.680.58
Note(s):

This table reports the causal impact of sustainability performance on sustainability ranking using a Tobit panel model, as the ranking variable is left-censored. This analysis is used to test the H1a. Both the dependent and independent variables are expressed in first differences, which also absorb individual fixed effects. They follow a three-year lag structure while the control variables are lagged by One year. In Model 4, only Two lags are used due to data limitations. Standard errors are reported in parentheses. ***p < 0.01, **p < 0.05, *p < 0.1

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