Table 9 Green innovation and the cost of...

Table 9

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

	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
Variables	PEG 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]
SIZE	0.002**	−0.003***	0.002**	−0.003***	0.002***	−0.001	0.002***	−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***	0.001	0.001***	0.001
	[−11.64]	[−6.47]	[−11.64]	[−6.49]	[4.34]	[1.52]	[4.33]	[1.51]
DEBT	0.041***	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]
AGE	0.007***	0.011***	0.007***	0.011***	0.001*	−0.000	0.001*	−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]
DAC	0.001	0.002	0.001	0.002	0.000	0.007***	0.000	0.007***
	[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**	−0.000	0.000	−0.000	0.000
	[−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**	−0.000	0.002**	−0.000	0.002*
	[−4.32]	[−2.46]	[−4.32]	[−2.47]	[−0.02]	[1.97]	[−0.01]	[1.96]
TOP10	0.011**	0.003	0.011**	0.004	−0.003	0.002	−0.003	0.002
	[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***	0.002	0.004**	0.002	0.004**
	[−2.98]	[−5.77]	[−2.98]	[−5.79]	[1.52]	[2.41]	[1.51]	[2.40]
BSIZE	−0.000	0.005	−0.000	0.005	−0.005***	−0.001	−0.005***	−0.001
	[−0.08]	[0.84]	[−0.09]	[0.87]	[−3.04]	[−0.55]	[−3.07]	[−0.53]
BIND	0.002	0.026	0.002	0.026	−0.011*	−0.004	−0.011*	−0.004
	[0.14]	[1.33]	[0.13]	[1.35]	[−1.75]	[−0.48]	[−1.78]	[−0.46]
DUAL	0.002	−0.005*	0.002	−0.005*	0.001	−0.001	0.001	−0.001
	[1.01]	[−1.81]	[1.02]	[−1.82]	[0.91]	[−1.20]	[0.93]	[−1.21]
Constant	0.044**	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 & Industry	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Observations	7,024	3,617	7,024	3,617	7,024	3,617	7,024	3,617
Adj. R²	0.09	0.10	0.09	0.10	0.05	0.02	0.05	0.02
The Chow test	χ² = 2.66, p > 0.073		χ² = 2.21.80, p > 0.090		χ² = 3.29, p > 0.069		χ² = 2.45, p > 0.082

	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
Variables	PEGPOST = 1	PEGPOST = 0	PEGPOST = 1	PEGPOST = 0	MPEGPOST = 1	MPEGPOST = 0	MPEGPOST = 1	MPEGPOST = 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]
SIZE	0.002**	−0.003***	0.002**	−0.003***	0.002***	−0.001	0.002***	−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***	0.001	0.001***	0.001
	[−11.64]	[−6.47]	[−11.64]	[−6.49]	[4.34]	[1.52]	[4.33]	[1.51]
DEBT	0.041***	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]
AGE	0.007***	0.011***	0.007***	0.011***	0.001*	−0.000	0.001*	−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]
DAC	0.001	0.002	0.001	0.002	0.000	0.007***	0.000	0.007***
	[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**	−0.000	0.000	−0.000	0.000
	[−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**	−0.000	0.002**	−0.000	0.002*
	[−4.32]	[−2.46]	[−4.32]	[−2.47]	[−0.02]	[1.97]	[−0.01]	[1.96]
TOP10	0.011**	0.003	0.011**	0.004	−0.003	0.002	−0.003	0.002
	[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***	0.002	0.004**	0.002	0.004**
	[−2.98]	[−5.77]	[−2.98]	[−5.79]	[1.52]	[2.41]	[1.51]	[2.40]
BSIZE	−0.000	0.005	−0.000	0.005	−0.005***	−0.001	−0.005***	−0.001
	[−0.08]	[0.84]	[−0.09]	[0.87]	[−3.04]	[−0.55]	[−3.07]	[−0.53]
BIND	0.002	0.026	0.002	0.026	−0.011*	−0.004	−0.011*	−0.004
	[0.14]	[1.33]	[0.13]	[1.35]	[−1.75]	[−0.48]	[−1.78]	[−0.46]
DUAL	0.002	−0.005*	0.002	−0.005*	0.001	−0.001	0.001	−0.001
	[1.01]	[−1.81]	[1.02]	[−1.82]	[0.91]	[−1.20]	[0.93]	[−1.21]
Constant	0.044**	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 & Industry	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Observations	7,024	3,617	7,024	3,617	7,024	3,617	7,024	3,617
Adj. R²	0.09	0.10	0.09	0.10	0.05	0.02	0.05	0.02
The Chow test	χ² = 2.66, p > 0.073		χ² = 2.21.80, p > 0.090		χ² = 3.29, p > 0.069		χ² = 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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