Table 4. Regression and GMM results...

Table 4.

Regression and GMM results

Table a
Variables	ROIC FE		ROIC GMM		ROE FE		ROE GMM		ROA FE		ROA GMM		EPS FE		EPS GMM
Variables	Coef	S.E	Coef	S.E	Coef	S.E	Coef	S.E	Coef	S.E	Coef	S.E	Coef	S.E	Coef	S.E
ESG Score	−0.009***	0.003	−0.009***	0.003	−0.015**	0.007	−0.015**	0.007	0.000	0.003	0.000	0.003	−0.021***	0.007	−0.025***	0.007
β	−0.192	0.136	−0.062	0.136	−0.643**	0.262	−0.675**	0.282	−0.060	0.102	−0.069	0.105	−0.352	0.278	−0.362	0.289
Unsystematic Risk	−0.649***	0.243	−0.787***	0.232	−1.612***	0.466	−1.616***	0.496	0.216	0.182	0.221	0.184	0.0313	0.495	0.243	0.499
Firm leverage	0.000***	0.000	0.000***	0.000	0.001***	0.000	0.001***	0.000	−0.001***	0.000	−0.001***	0.000	−0.001**	0.0003	−0.001**	0.000
Firms Size	−0.030	0.033	0.003	0.033	−0.195***	0.063	−0.193***	0.067	−0.058**	0.025	−0.058**	0.025	0.515***	0.068	0.574***	0.069
Moder_ESG_Fsize	0.279***	0.058	0.240***	0.055	0.316***	0.110	0.307***	0.117	−0.044	0.043	−0.044	0.043	−0.227*	0.117	−0.266**	0.118
R2	0.268				0.236				0.432				0.3598
Arellano-Bond: AR (2)			0.644				0.171				0.252				0.790
Sargan test (p-value)			0.282				0.831				0.576				0.229
Observations	152
Table b
Variables	ROIC FE		ROIC GMM		ROE FE		ROE GMM		ROA FE		ROA GMM		EPS		EPS GMM
Variables	Coef	S.E	Coef	S.E	Coef	S.E	Coef	S.E	Coef	S.E	Coef	S.E	Coef	S.E	Coef	S.E
E score	−0.005*	0.003	−0.005**	0.002	−0.004	0.005	−0.004	0.005	−0.001	0.002	−0.001	0.002	−0.008	0.005	−0.008	0.005
S score	−0.002	0.005	−0.003	0.004	−0.012	0.009	−0.012	0.009	−0.004	0.003	−0.005	0.004	−0.019**	0.009	−0.022**	0.009
G score	0.005	0.004	0.006	0.003	0.005	0.007	0.005	0.007	0.004*	0.003	0.005*	0.003	0.002	0.007	0.004	0.007
β	0.021	0.143	0.028	0.134	−0.405	0.264	−0.382	0.284	−0.088	0.100	−0.074	0.100	−0.511*	0.276	−0.443*	0.260
Unsystematic risk	−0.600**	0.263	−0.600**	0.245	−1.598***	0.485	−1.597***	0.519	0.166	0.184	0.151	0.183	−0.206	0.506	−0.200	0.475
Firm leverage	0.000***	0.000	0.000***	0.000	0.001***	0.000	0.001***	0.000	−0.001***	0.000	−0.001***	0.000	−0.001**	0.000	−0.001***	0.000
Firms size	0.065**	0.033	0.066**	0.030	−0.089	0.060	−0.087	0.064	−0.063***	0.023	−0.059**	0.023	0.472***	0.063	0.480***	0.060
Moder_ENV_Fsize	−0.013	0.082	0.003	0.074	−0.019	0.151	0.017	0.156	0.007	0.057	0.012	0.055	−0.116	0.157	−0.042	0.147
Moder_SOC_Fsize	0.067	0.094	0.051	0.086	−0.017	0.173	−0.052	0.182	−0.010	0.066	−0.025	0.065	0.159	0.181	0.101	0.172
Moder_GOV_Fsize	−0.054	0.060	−0.065	0.054	−0.004	0.110	−0.028	0.114	−0.019	0.042	−0.018	0.040	−0.009	0.115	−0.055	0.104
R2	0.191				0.2168				0.4476				0.369
Arellano-Bond: AR(2)			0.741				0.139				0.229				0.404
Sargan test (p-value)			0.158				0.697				0.218				0.276
Observations	152

Table a
Variables	ROIC FE		ROIC GMM		ROE FE		ROE GMM		ROA FE		ROA GMM		EPS FE		EPS GMM
Variables	Coef	S.E	Coef	S.E	Coef	S.E	Coef	S.E	Coef	S.E	Coef	S.E	Coef	S.E	Coef	S.E
ESG Score	−0.009***	0.003	−0.009***	0.003	−0.015**	0.007	−0.015**	0.007	0.000	0.003	0.000	0.003	−0.021***	0.007	−0.025***	0.007
β	−0.192	0.136	−0.062	0.136	−0.643**	0.262	−0.675**	0.282	−0.060	0.102	−0.069	0.105	−0.352	0.278	−0.362	0.289
Unsystematic Risk	−0.649***	0.243	−0.787***	0.232	−1.612***	0.466	−1.616***	0.496	0.216	0.182	0.221	0.184	0.0313	0.495	0.243	0.499
Firm leverage	0.000***	0.000	0.000***	0.000	0.001***	0.000	0.001***	0.000	−0.001***	0.000	−0.001***	0.000	−0.001**	0.0003	−0.001**	0.000
Firms Size	−0.030	0.033	0.003	0.033	−0.195***	0.063	−0.193***	0.067	−0.058**	0.025	−0.058**	0.025	0.515***	0.068	0.574***	0.069
Moder_ESG_Fsize	0.279***	0.058	0.240***	0.055	0.316***	0.110	0.307***	0.117	−0.044	0.043	−0.044	0.043	−0.227*	0.117	−0.266**	0.118
R2	0.268				0.236				0.432				0.3598
Arellano-Bond: AR (2)			0.644				0.171				0.252				0.790
Sargan test (p-value)			0.282				0.831				0.576				0.229
Observations	152
Table b
Variables	ROIC FE		ROIC GMM		ROE FE		ROE GMM		ROA FE		ROA GMM		EPS		EPS GMM
Variables	Coef	S.E	Coef	S.E	Coef	S.E	Coef	S.E	Coef	S.E	Coef	S.E	Coef	S.E	Coef	S.E
E score	−0.005*	0.003	−0.005**	0.002	−0.004	0.005	−0.004	0.005	−0.001	0.002	−0.001	0.002	−0.008	0.005	−0.008	0.005
S score	−0.002	0.005	−0.003	0.004	−0.012	0.009	−0.012	0.009	−0.004	0.003	−0.005	0.004	−0.019**	0.009	−0.022**	0.009
G score	0.005	0.004	0.006	0.003	0.005	0.007	0.005	0.007	0.004*	0.003	0.005*	0.003	0.002	0.007	0.004	0.007
β	0.021	0.143	0.028	0.134	−0.405	0.264	−0.382	0.284	−0.088	0.100	−0.074	0.100	−0.511*	0.276	−0.443*	0.260
Unsystematic risk	−0.600**	0.263	−0.600**	0.245	−1.598***	0.485	−1.597***	0.519	0.166	0.184	0.151	0.183	−0.206	0.506	−0.200	0.475
Firm leverage	0.000***	0.000	0.000***	0.000	0.001***	0.000	0.001***	0.000	−0.001***	0.000	−0.001***	0.000	−0.001**	0.000	−0.001***	0.000
Firms size	0.065**	0.033	0.066**	0.030	−0.089	0.060	−0.087	0.064	−0.063***	0.023	−0.059**	0.023	0.472***	0.063	0.480***	0.060
Moder_ENV_Fsize	−0.013	0.082	0.003	0.074	−0.019	0.151	0.017	0.156	0.007	0.057	0.012	0.055	−0.116	0.157	−0.042	0.147
Moder_SOC_Fsize	0.067	0.094	0.051	0.086	−0.017	0.173	−0.052	0.182	−0.010	0.066	−0.025	0.065	0.159	0.181	0.101	0.172
Moder_GOV_Fsize	−0.054	0.060	−0.065	0.054	−0.004	0.110	−0.028	0.114	−0.019	0.042	−0.018	0.040	−0.009	0.115	−0.055	0.104
R2	0.191				0.2168				0.4476				0.369
Arellano-Bond: AR(2)			0.741				0.139				0.229				0.404
Sargan test (p-value)			0.158				0.697				0.218				0.276
Observations	152

Notes:

^aThis table presents results from FEs panel regressions and GMM for the ESG practice and firm FP; and control during 2015–2019 for the whole sample. Also, the table reports estimated coefficients and corresponding standard errors for linear probability models using cluster robust standard errors at the individual level. Significance levels: *** means p < 0.01, ∗∗ means p < 0.05 and ∗ means p < 0.10.

This table presents results from FEs panel regressions and GMM for the E, S and G dimensions and firm FP and control during 2015–2019 for the whole sample. Also, the table reports estimated coefficients and corresponding standard errors for linear probability models using cluster robust standard errors at the individual level. Significance levels: *** p < 0.01, **p < 0.05 and *p < 0.10

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