Pooled OLS regression result: financial constraints and carbon emissions: environmental expenditure investment if the company reports on its environmental expenditure investment to minimize future risk or increase opportunities and zero otherwise
| Variables | Carbon emissions Environmental expenditure investment is reported | Carbon emissions Environmental expenditure investment is not reported |
|---|---|---|
| Financial constraints | 0.923** (0.419) | 0.216*** (0.066) |
| Board gender diversity | 0.017 (0.012) | 0.004 (0.002) |
| Policy emissions reduction | 0.553* (0.284) | 1.393*** (0.082) |
| Eco-innovation score | 0.682** (0.254) | 0.554*** (0.090) |
| Executive gender diversity | −0.045*** (0.012) | 0.007* (0.003) |
| Human rights policy | 0.471** (0.213) | −0.132** (0.056) |
| Board size | 0.312*** (0.056) | 0.197*** (0.031) |
| Policy board diversity | −0.030* (0.014) | 0.004 (0.007) |
| Independent board director | 0.036 (0.402) | 0.836 (0.547) |
| Leverage | −0.698** (0.248) | 0.022 (0.033) |
| Board-specific skills | −0.015* (0.008) | −0.007*** (0.002) |
| Return on asset | 0.458*** (0.122) | 0.149*** (0.047) |
| Constant | 11.938*** (2.561) | 6.057** (2.660) |
| Industry and year FE | Yes | Yes |
| Observations | 279 | 1,257 |
| R-squared | 0.505 | 0.342 |
| Adjusted R-squared | 0.438 | 0.324 |
| Variables | Carbon emissions | Carbon emissions |
|---|---|---|
| Financial constraints | 0.923** (0.419) | 0.216 |
| Board gender diversity | 0.017 (0.012) | 0.004 (0.002) |
| Policy emissions reduction | 0.553* (0.284) | 1.393 |
| Eco-innovation score | 0.682** (0.254) | 0.554 |
| Executive gender diversity | −0.045 | 0.007* (0.003) |
| Human rights policy | 0.471** (0.213) | −0.132** (0.056) |
| Board size | 0.312 | 0.197 |
| Policy board diversity | −0.030* (0.014) | 0.004 (0.007) |
| Independent board director | 0.036 (0.402) | 0.836 (0.547) |
| Leverage | −0.698** (0.248) | 0.022 (0.033) |
| Board-specific skills | −0.015* (0.008) | −0.007 |
| Return on asset | 0.458 | 0.149 |
| Constant | 11.938 | 6.057** (2.660) |
| Industry and year FE | Yes | Yes |
| Observations | 279 | 1,257 |
| 0.505 | 0.342 | |
| Adjusted | 0.438 | 0.324 |
Notes:
Standard errors are in parentheses;
***p < 0.01; **p < 0.05 and *p < 0.1