Table 9. Two-stage least squares...

Table 9.

Two-stage least squares instrumental variables (ESG_ LINKED_ BONUS and Disc)

	(1)	(2)	(3)	(4)	(5)	(6)
	First stage	Second stage	First stage	Second stage	First stage	Second stage
Variables	IR_release_Cluster1	ferror_0	IR_release_Cluster2	ferror_0	IR_release_Cluster3	ferror_0
l_eps_st	0.033***	0.012***	0.004	0.010***	0.035***	0.007***
	(0.001)	(0.000)	(0.547)	(0.000)	(0.000)	(0.000)
ln_nana	0.019	−0.001	0.066***	0.004	−0.004	−0.003
	(0.254)	(0.788)	(0.000)	(0.103)	(0.611)	(0.168)
lev	0.016	0.010**	−0.029	0.021***	−0.032	−0.004
	(0.698)	(0.045)	(0.360)	(0.000)	(0.119)	(0.527)
ROA	−0.337***	−0.096***	1.127***	−0.080***	0.144***	−0.057***
	(0.001)	(0.000)	(0.000)	(0.000)	(0.002)	(0.000)
IR_first	0.157***	0.010***	0.027*	0.004	−0.009	−0.000
	(0.000)	(0.004)	(0.086)	(0.154)	(0.350)	(0.947)
IFRS	0.105**	0.021***	0.010	−0.007*	0.370***	−0.035**
	(0.013)	(0.000)	(0.659)	(0.089)	(0.000)	(0.034)
CSR_report	0.036	0.012**	−0.036	0.026***	0.186***	−0.005
	(0.423)	(0.036)	(0.275)	(0.000)	(0.000)	(0.527)
Naics	−0.022	0.008***	−0.011	0.002	−0.056***	0.010***
	(0.267)	(0.001)	(0.405)	(0.498)	(0.000)	(0.002)
BoardSize	0.000	0.001*	−0.007***	0.000	0.003***	0.000
	(0.958)	(0.070)	(0.000)	(0.541)	(0.006)	(0.849)
W	0.463***	0.036***	−0.253***	0.018**	0.018	−0.001
	(0.000)	(0.000)	(0.000)	(0.044)	(0.572)	(0.881)
Controlled	0.003	0.001	−0.073***	0.005	0.068***	−0.011***
	(0.935)	(0.728)	(0.002)	(0.201)	(0.000)	(0.008)
Nonex	0.006***	0.000	0.001***	−0.000*	−0.005***	0.001***
	(0.000)	(0.762)	(0.004)	(0.076)	(0.000)	(0.008)
ESG_LINKED_BONUS_Cluster1	0.158***
	(0.000)
Disc_Cluster1	0.649***
	(0.000)
Cluster1	0.289**	0.031**
	(0.022)	(0.023)
IR_release_Cluster1		−0.058***
		(0.000)
ESG_LINKED_BONUS_Cluster2			0.402***
			(0.000)
Disc_Cluster2			−1.995***
			(0.000)
Cluster2			1.651***	0.037***
			(0.000)	(0.000)
IR_release_Cluster2				−0.019***
				(0.009)
ESG_LINKED_BONUS_Cluster3					0.077***
					(0.000)
Disc_Cluster3					0.151***
					(0.000)
Cluster3					0.746***	−0.052
					(0.000)	(0.176)
IR_release_Cluster3						0.076*
						(0.074)
Constant	−0.811***	−0.025	−0.131***	−0.005	0.069***	−0.002
	(0.000)	(0.115)	(0.000)	(0.423)	(0.002)	(0.777)

Observations	1,091	1,091	1,091	1,091	1,091	1,091
R-squared		0.106		0.170		0.171
Under-identification (t-stat)		81.477		364.918		36.595
Under-identification (p-value)		0.000		0.000		0.000
Weak-identification (t-stat)		43.381		270.139		18.655
Stock-Yogo (10% max IV size)		19.93		19.93		19.93
Sargan (t-stat)		10.377		104.313		17.203
Sargan (p-value)		0.001		0.000		0.000

	(1)	(2)	(3)	(4)	(5)	(6)
	First stage	Second stage	First stage	Second stage	First stage	Second stage
Variables	IR_release_Cluster1	ferror_0	IR_release_Cluster2	ferror_0	IR_release_Cluster3	ferror_0
l_eps_st	0.033***	0.012***	0.004	0.010***	0.035***	0.007***
	(0.001)	(0.000)	(0.547)	(0.000)	(0.000)	(0.000)
ln_nana	0.019	−0.001	0.066***	0.004	−0.004	−0.003
	(0.254)	(0.788)	(0.000)	(0.103)	(0.611)	(0.168)
lev	0.016	0.010**	−0.029	0.021***	−0.032	−0.004
	(0.698)	(0.045)	(0.360)	(0.000)	(0.119)	(0.527)
ROA	−0.337***	−0.096***	1.127***	−0.080***	0.144***	−0.057***
	(0.001)	(0.000)	(0.000)	(0.000)	(0.002)	(0.000)
IR_first	0.157***	0.010***	0.027*	0.004	−0.009	−0.000
	(0.000)	(0.004)	(0.086)	(0.154)	(0.350)	(0.947)
IFRS	0.105**	0.021***	0.010	−0.007*	0.370***	−0.035**
	(0.013)	(0.000)	(0.659)	(0.089)	(0.000)	(0.034)
CSR_report	0.036	0.012**	−0.036	0.026***	0.186***	−0.005
	(0.423)	(0.036)	(0.275)	(0.000)	(0.000)	(0.527)
Naics	−0.022	0.008***	−0.011	0.002	−0.056***	0.010***
	(0.267)	(0.001)	(0.405)	(0.498)	(0.000)	(0.002)
BoardSize	0.000	0.001*	−0.007***	0.000	0.003***	0.000
	(0.958)	(0.070)	(0.000)	(0.541)	(0.006)	(0.849)
W	0.463***	0.036***	−0.253***	0.018**	0.018	−0.001
	(0.000)	(0.000)	(0.000)	(0.044)	(0.572)	(0.881)
Controlled	0.003	0.001	−0.073***	0.005	0.068***	−0.011***
	(0.935)	(0.728)	(0.002)	(0.201)	(0.000)	(0.008)
Nonex	0.006***	0.000	0.001***	−0.000*	−0.005***	0.001***
	(0.000)	(0.762)	(0.004)	(0.076)	(0.000)	(0.008)
ESG_LINKED_BONUS_Cluster1	0.158***
	(0.000)
Disc_Cluster1	0.649***
	(0.000)
Cluster1	0.289**	0.031**
	(0.022)	(0.023)
IR_release_Cluster1		−0.058***
		(0.000)
ESG_LINKED_BONUS_Cluster2			0.402***
			(0.000)
Disc_Cluster2			−1.995***
			(0.000)
Cluster2			1.651***	0.037***
			(0.000)	(0.000)
IR_release_Cluster2				−0.019***
				(0.009)
ESG_LINKED_BONUS_Cluster3					0.077***
					(0.000)
Disc_Cluster3					0.151***
					(0.000)
Cluster3					0.746***	−0.052
					(0.000)	(0.176)
IR_release_Cluster3						0.076*
						(0.074)
Constant	−0.811***	−0.025	−0.131***	−0.005	0.069***	−0.002
	(0.000)	(0.115)	(0.000)	(0.423)	(0.002)	(0.777)

Observations	1,091	1,091	1,091	1,091	1,091	1,091
R-squared		0.106		0.170		0.171
Under-identification (t-stat)		81.477		364.918		36.595
Under-identification (p-value)		0.000		0.000		0.000
Weak-identification (t-stat)		43.381		270.139		18.655
Stock-Yogo (10% max IV size)		19.93		19.93		19.93
Sargan (t-stat)		10.377		104.313		17.203
Sargan (p-value)		0.001		0.000		0.000

Notes: *p < 0.10, **p < 0.05, ***p < 0.01

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