Table 5.

Linear mixed-effects multilevel analysis and two-step GMM for sustainability and financial performance

 Linear mixed-effects multilevel regressionTwo-step system GMM
Model 1Model 2Model 3Model 4
EVATobin’s QEVATobin’s Q
VariablesCoeffSECoeffSECoeffSECoeffSE
ESG0.552***(0.090)0.013***(0.002)0.499*(0.302)0.008*(0.005)
Beta−29.01***(2.857)−0.227***(0.073)−73.425**(33.291)−2.230**(1.048)
Leverage−0.192(0.127)−0.004(0.003)−5.866(10.421)0.054(0.266)
Firm size−20.90***(0.918)−0.454***(0.023)−17.456***(3.828)−0.306***(0.096)
Eco growth−0.431(0.367)0.015(0.010)1.484(4.024)−0.128(0.097)
GDP per capita0.000(0.000)0.000(0.000)−0.001(0.002)0.000(0.000)
Inflation0.580(1.050)−0.0299(0.029)−22.648(32.064)0.682(0.825)
Variance of random intercept1.90***2.28***N/A
LR test versus linear regressionχ2(1) = 32.95
p-value < 0.01
χ2(1) = 26.55
p-value < 0.01
Arellano–Bond: AR2N/A0.1900.558
Sargan test p value0.7890.536

Notes:

Standard errors in parentheses. ***p < 0.01; **p < 0.05; *p < 0.1; N/A= Not applicable for the model; N = 4770; Level 2: Country data; Constant is included (not reported for brevity)

Source: Authors’ own creation

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