Table 1 Analyses of the relationship...

Table 1

Analyses of the relationship between ESG and firm performance

Variables	(1) Q	(2) Q	(3) Q	(4) Q	(5) Q
ESG	0.4524***	0.2336***	0.3014***	0.4495***	0.5392***
ESG	(7.34)	(3.17)	(3.32)	(6.09)	(6.37)
ESG*STAKE			0.3353***
ESG*STAKE			(3.10)
ESG*FINCONST				−0.3131***
ESG*FINCONST				(−3.20)
ESG*REL					−0.2085**
ESG*REL					(−2.12)
SIZE	−0.2122***	−0.5176***	−0.2132***	−0.2185***	−0.2161***
SIZE	(−25.24)	(−26.08)	(−25.29)	(−28.27)	(−27.84)
TANG	−0.8333***	−0.8215***	−0.8354***	−1.0273***	−0.9431***
TANG	(−10.35)	(−6.44)	(−10.38)	(−12.90)	(−11.84)
GROWTH	0.8237***	0.3941***	0.8208***	0.8969***	0.8288***
GROWTH	(18.64)	(11.61)	(18.57)	(20.00)	(18.42)
RDINT	8.6197***	2.5276***	8.6059***	9.4046***	9.1101***
RDINT	(44.70)	(7.09)	(44.64)	(49.17)	(46.94)
RET	4.5321***	2.5282***	4.5332***	4.5722***	4.8861***
RET	(43.05)	(24.69)	(43.08)	(43.12)	(45.99)
CAPEX	4.0975***	3.0857***	4.0945***	4.3677***	4.3177***
CAPEX	(12.63)	(10.41)	(12.62)	(13.28)	(13.15)
LEV	0.1918***	−0.0938	0.1982***	0.6853***	0.3143***
LEV	(3.33)	(−1.28)	(3.44)	(11.08)	(5.46)
DIV	0.0539**	0.0218	0.0565**	5.1242***	0.1791***
DIV	(2.16)	(0.80)	(2.26)	(24.60)	(7.32)
STAKE			−0.2324***
STAKE			(−3.76)
FINCONST				−0.0706
FINCONST				(−1.23)
REL					−0.2085**
REL					(5.53)
Constant	4.7191***	9.8055***	4.8451***	0.4495***	4.7386***
Constant	(19.55)	(32.23)	(19.82)	(6.09)	(22.37)
Observations	13,020	13,020	13,020	13,020	13,020
R-squared	0.5028	0.2258	0.5034	0.4768	0.4787
Industry FE	YES		YES	YES	YES
Year FE	YES	YES	YES	YES	YES
Country FE	YES		YES	YES	NO^a
Firm FE		YES

Variables	(1)Q	(2)Q	(3)Q	(4)Q	(5)Q
ESG	0.4524***	0.2336***	0.3014***	0.4495***	0.5392***
ESG	(7.34)	(3.17)	(3.32)	(6.09)	(6.37)
ESG*STAKE			0.3353***
ESG*STAKE			(3.10)
ESG*FINCONST				−0.3131***
ESG*FINCONST				(−3.20)
ESG*REL					−0.2085**
ESG*REL					(−2.12)
SIZE	−0.2122***	−0.5176***	−0.2132***	−0.2185***	−0.2161***
SIZE	(−25.24)	(−26.08)	(−25.29)	(−28.27)	(−27.84)
TANG	−0.8333***	−0.8215***	−0.8354***	−1.0273***	−0.9431***
TANG	(−10.35)	(−6.44)	(−10.38)	(−12.90)	(−11.84)
GROWTH	0.8237***	0.3941***	0.8208***	0.8969***	0.8288***
GROWTH	(18.64)	(11.61)	(18.57)	(20.00)	(18.42)
RDINT	8.6197***	2.5276***	8.6059***	9.4046***	9.1101***
RDINT	(44.70)	(7.09)	(44.64)	(49.17)	(46.94)
RET	4.5321***	2.5282***	4.5332***	4.5722***	4.8861***
RET	(43.05)	(24.69)	(43.08)	(43.12)	(45.99)
CAPEX	4.0975***	3.0857***	4.0945***	4.3677***	4.3177***
CAPEX	(12.63)	(10.41)	(12.62)	(13.28)	(13.15)
LEV	0.1918***	−0.0938	0.1982***	0.6853***	0.3143***
LEV	(3.33)	(−1.28)	(3.44)	(11.08)	(5.46)
DIV	0.0539**	0.0218	0.0565**	5.1242***	0.1791***
DIV	(2.16)	(0.80)	(2.26)	(24.60)	(7.32)
STAKE			−0.2324***
STAKE			(−3.76)
FINCONST				−0.0706
FINCONST				(−1.23)
REL					−0.2085**
REL					(5.53)
Constant	4.7191***	9.8055***	4.8451***	0.4495***	4.7386***
Constant	(19.55)	(32.23)	(19.82)	(6.09)	(22.37)
Observations	13,020	13,020	13,020	13,020	13,020
R-squared	0.5028	0.2258	0.5034	0.4768	0.4787
Industry FE	YES		YES	YES	YES
Year FE	YES	YES	YES	YES	YES
Country FE	YES		YES	YES	NO^a
Firm FE		YES

Note(s): The dependent variable is Tobin’s Q. ***, ** and * denote significance at the 1, 5 and 10% levels, respectively. T-statistics are reported in parenthesis

^a Given that the variable “religiosity” (REL) might not have any variation across firms within a country, controlling for country fixed effect may result in large standard errors. Therefore, in column (5) the authors perform the regression without controlling country fixed effect (denoted as “NO”). This test is suggested by a reviewer

Source(s): Table created by authors

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