Two-stage least squares instrumental variable (ESG_ LINKED_ BONUS)
| (1) | (2) | ||
|---|---|---|---|
| First stage | Second stage | ||
| VARIABLES | IR_release | ferror_0 | |
| Firm-level financial controls | l_eps_st | 0.063*** | 0.006** |
| (0.000) | (0.032) | ||
| ln_nana | 0.122*** | −0.006 | |
| (0.000) | (0.191) | ||
| lev | 0.264*** | −0.017* | |
| (0.000) | (0.075) | ||
| ROA | 0.094 | −0.065*** | |
| (0.506) | (0.000) | ||
| Firm-level disclosure controls | IR_first | 0.262*** | −0.019** |
| (0.000) | (0.033) | ||
| IFRS | 0.529*** | −0.041** | |
| (0.000) | (0.020) | ||
| CSR_report | 0.146** | 0.007 | |
| (0.025) | (0.439) | ||
| Naics | −0.022 | −0.001 | |
| (0.403) | (0.846) | ||
| Firm-level corporate governance controls | BoardSize | 0.009*** | −0.001* |
| (0.007) | (0.098) | ||
| W | 0.103 | −0.016 | |
| (0.238) | (0.146) | ||
| Controlled | 0.028 | −0.006 | |
| (0.520) | (0.201) | ||
| Nonex | 0.001 | 0.000 | |
| (0.137) | (0.441) | ||
| ESG_LINKED_BONUS | 0.080*** | ||
| (0.000) | |||
| IR_release | 0.070** | ||
| (0.021) | |||
| Constant | −0.383*** | 0.031** | |
| (0.000) | (0.027) | ||
| Observations | 1,209 | 1,209 | |
| R-squared | −0.804 | ||
| Under-identification (t-stat) | 14.328 | ||
| Under-identification (p-value) | 0.000 | ||
| Weak-identification (t-stat) | 14.332 | ||
| Stock-Yogo (10% max IV size) | 16.38 | ||
| Sargan (t-stat) | 0.000 | ||
| Sargan (p-value) | 0.000 |
| (1) | (2) | ||
|---|---|---|---|
| First stage | Second stage | ||
| VARIABLES | IR_release | ferror_0 | |
| Firm-level financial controls | l_eps_st | 0.063 | 0.006 |
| (0.000) | (0.032) | ||
| ln_nana | 0.122 | −0.006 | |
| (0.000) | (0.191) | ||
| lev | 0.264 | −0.017 | |
| (0.000) | (0.075) | ||
| ROA | 0.094 | −0.065 | |
| (0.506) | (0.000) | ||
| Firm-level disclosure controls | IR_first | 0.262 | −0.019 |
| (0.000) | (0.033) | ||
| IFRS | 0.529 | −0.041 | |
| (0.000) | (0.020) | ||
| CSR_report | 0.146 | 0.007 | |
| (0.025) | (0.439) | ||
| Naics | −0.022 | −0.001 | |
| (0.403) | (0.846) | ||
| Firm-level corporate governance controls | BoardSize | 0.009 | −0.001 |
| (0.007) | (0.098) | ||
| W | 0.103 | −0.016 | |
| (0.238) | (0.146) | ||
| Controlled | 0.028 | −0.006 | |
| (0.520) | (0.201) | ||
| Nonex | 0.001 | 0.000 | |
| (0.137) | (0.441) | ||
| ESG_LINKED_BONUS | 0.080 | ||
| (0.000) | |||
| IR_release | 0.070 | ||
| (0.021) | |||
| Constant | −0.383 | 0.031 | |
| (0.000) | (0.027) | ||
| Observations | 1,209 | 1,209 | |
| −0.804 | |||
| Under-identification (t-stat) | 14.328 | ||
| Under-identification ( | 0.000 | ||
| Weak-identification (t-stat) | 14.332 | ||
| Stock-Yogo (10% max IV size) | 16.38 | ||
| Sargan (t-stat) | 0.000 | ||
| Sargan ( | 0.000 |
Notes: *p < 0.10, **p < 0.05, ***p < 0.01