Table 9

Green innovation and the cost of equity capital: The effect of 2012 regulation

(1)(2)(3)(4)(5)(6)(7)(8)
VariablesPEG
POST = 1		PEG
POST = 0		PEG
POST = 1		PEG
POST = 0		MPEG
POST = 1		MPEG
POST = 0		MPEG
POST = 1		MPEG
POST = 0
GP−0.007*0.001––−0.010***0.011––
 [−1.75][0.57]  [−2.64][0.20]  
GPR––−0.005*0.003––−0.011**0.001
   [−1.98][1.25]  [−2.56][0.64]
SIZE0.002**−0.003***0.002**−0.003***0.002***−0.0010.002***−0.001
 [2.16][−2.69][2.19][−2.80][6.20][−1.07][6.17][−1.14]
TOBIN_Q−0.006***−0.007***−0.006***−0.007***0.001***0.0010.001***0.001
 [−11.64][−6.47][−11.64][−6.49][4.34][1.52][4.33][1.51]
DEBT0.041***0.037***0.041***0.037***0.009***0.012***0.009***0.012***
 [9.85][5.92][9.86][5.94][5.20][4.97][5.21][4.98]
ROA−0.024*−0.093***−0.024*−0.092***0.073***0.032***0.073***0.032***
 [−1.82][−4.46][−1.82][−4.45][13.55][3.67][13.55][3.69]
AGE0.007***0.011***0.007***0.011***0.001*−0.0000.001*−0.000
 [6.76][7.02][6.73][7.08][1.79][−0.48][1.80][−0.44]
REST−0.000−0.005*−0.000−0.005*−0.001−0.000−0.001−0.000
 [−0.17][−1.72][−0.18][−1.73][−1.23][−0.07][−1.22][−0.08]
DAC0.0010.0020.0010.0020.0000.007***0.0000.007***
 [0.31][0.36][0.31][0.38][0.07][2.87][0.09][2.88]
CSRR−0.000***0.000**−0.000***0.000**−0.0000.000−0.0000.000
 [−3.86][2.14][−3.86][2.14][−1.58][0.02][−1.58][0.02]
SOE−0.007***−0.005**−0.007***−0.005**−0.0000.002**−0.0000.002*
 [−4.32][−2.46][−4.32][−2.47][−0.02][1.97][−0.01][1.96]
TOP100.011**0.0030.011**0.004−0.0030.002−0.0030.002
 [2.22][0.53][2.22][0.56][−1.30][0.82][−1.26][0.84]
IOWN−0.011***−0.027***−0.011***−0.027***0.0020.004**0.0020.004**
 [−2.98][−5.77][−2.98][−5.79][1.52][2.41][1.51][2.40]
BSIZE−0.0000.005−0.0000.005−0.005***−0.001−0.005***−0.001
 [−0.08][0.84][−0.09][0.87][−3.04][−0.55][−3.07][−0.53]
BIND0.0020.0260.0020.026−0.011*−0.004−0.011*−0.004
 [0.14][1.33][0.13][1.35][−1.75][−0.48][−1.78][−0.46]
DUAL0.002−0.005*0.002−0.005*0.001−0.0010.001−0.001
 [1.01][−1.81][1.02][−1.82][0.91][−1.20][0.93][−1.21]
Constant0.044**0.138***0.044**0.140***−0.041***0.007−0.040***0.007
 [2.29][5.44][2.28][5.52][−5.11][0.65][−5.07][0.70]
Year & IndustryYesYesYesYesYesYesYesYes
Observations7,0243,6177,0243,6177,0243,6177,0243,617
Adj. R20.090.100.090.100.050.020.050.02
The Chow testχ2 = 2.66, p > 0.073χ2 = 2.21.80, p > 0.090χ2 = 3.29, p > 0.069χ2 = 2.45, p > 0.082

Note(s): This table reports the results of the passage of the 2012 environmental regulation on the cost of equity capital. 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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