Table 8

Moderation tests

(1)(2)(3)(4)
VariablesPEGMPEGPEGMPEG
Panel A: Green innovation and the cost of equity: Moderating effect of financial constraints
GP−0.022*−0.024*––
 [−1.73][−1.75]  
FC0.012***0.012***0.012***0.012***
 [4.14][4.30][4.10][4.26]
GP*FC0.030**0.030**––
 [2.04][2.03]  
GPR––−0.014**−0.015**
   [−2.02][−2.05]
GPR*FC––0.041***0.051***
   [2.60][2.61]
Other control variablesYesYesYesYes
Constant0.106***0.076***0.106***0.076***
 [6.76][4.85][6.76][4.84]
IndustryYesYesYesYes
YearYesYesYesYes
Observations10,64110,52610,64110,526
Adjusted R20.150.140.150.14
Panel B: Green innovation and the cost of equity: Moderating effects of EPU
GP−0.030*−0.040**––
 [−1.68][−2.07]  
EPU0.0050.0040.0060.007
 [0.87][0.85][0.23][0.91]
GP*EPU−0.022*−0.020*––
 [−1.76][−1.73]  
GPR––−0.012*−0.013*
   [−1.85][−1.87]
GPR*EPU––−0.040*−0.041*
   [−1.76][−1.71]
Other control variablesYesYesYesYes
Constant0.417***0.376***0.417***0.377***
 [11.61][9.33][11.62][9.35]
IndustryYesYesYesYes
YearYesYesYesYes
Observations10,64110,64110,64110,641
Adjusted R20.130.130.130.13
Panel C: Green innovation and the cost of equity: Moderating effect of IC
GP−0.040*−0.040**––
 [−1.96][−2.28]  
IC−0.003**−0.003**−0.003**−0.003**
 [−2.03][−204][−2.29][−2.24]
GP*IC−0.021*−0.020*––
 [−1.79][−1.78]  
GPR––−0.038*−0.034**
   [−1.79][−2.07]
GPR*IC––−0.012*−0.012*
   [−1.84][−1.72]
Other control variablesYesYesYesYes
Constant0.405***0.375***0.406***0.376***
 [10.09][9.30][10.11][9.32]
IndustryYesYesYesYes
YearYesYesYesYes
Observations10,64110,64110,64110,641
Adjusted R20.130.130.130.13

Note(s): This table reports the results of the moderating effect of financial constraint (Panel A), EPU (Panel B), and internal control environment (Panel C) on the relationship between green innovation and the cost of equity. Robust t-statistics (clustered at the firm level) are reported in brackets. *, **, *** denote a two-tailed p value of less than 0.10, 0.05, and 0.01, respectively. All variables are defined in Table 2. This table is prepared by the authors

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