Table 9. Instrumental variable analysis...

Table 9.

Instrumental variable analysis

Variable(s)	First stage	Second stage
	DEP = Framework	DEP = CSR policy
	Coefficient (t-value)	Coefficient (t-value)
Framework		0.1799*** (4.40)
Foreign_sales	0.0005*** (2.89)	0.0003*** (2.72)
Leverage	0.0627 (1.53)	0.0632*** (3.11)
Profit	−0.4163*** (−3.97)	0.0403 (0.74)
Size	0.0348*** (7.09)	0.0096*** (3.29)
MTB	−0.0033 (−1.51)	−0.0008 (−0.73)
Analysts	0.0521** (5.10)	0.0429*** (8.01)
Acnonex	−0.0002 (−0.48)	0.0000 (0.05)
Shright	0.0389* (1.79)	0.0062 (0.58)
Csrcommittee	0.1528*** (11.93)	0.0495*** (5.34)
Awards	0.0877*** (8.52)	0.0313*** (4.95)
Diversity	0.0008*** (2.71)	−0.008*** (−4.81)
Institution	0.3439** (2.16)	−0.0422 (−0.56)
GDP	−0.1505*** (−3.49)	−0.0067 (−0.31)
Civil	0.3088*** (17.71)	0.0104 (0.65)
Indcoun_framework	0.6633*** (11.09)
Yearcoun_framework	0.7528*** (4.95)
Constant	−0.1680 (−0.32)	0.4938* (1.94)
Year_FE	Yes	Yes
Industry_FE	Yes	Yes
Country_FE	Yes	Yes
N	2,443	2,443
F	66.41	53.34
Uncentered R²	0.9040	0.9787
Underindentification		139.956
Weak identification test		72.863
Sargan statistic		0.536(0.4643)

Variable(s)	First stage	Second stage
	DEP = Framework	DEP = CSR policy
	Coefficient(t-value)	Coefficient(t-value)
Framework		0.1799*** (4.40)
Foreign_sales	0.0005*** (2.89)	0.0003*** (2.72)
Leverage	0.0627 (1.53)	0.0632*** (3.11)
Profit	−0.4163*** (−3.97)	0.0403 (0.74)
Size	0.0348*** (7.09)	0.0096*** (3.29)
MTB	−0.0033 (−1.51)	−0.0008 (−0.73)
Analysts	0.0521** (5.10)	0.0429*** (8.01)
Acnonex	−0.0002 (−0.48)	0.0000 (0.05)
Shright	0.0389* (1.79)	0.0062 (0.58)
Csrcommittee	0.1528*** (11.93)	0.0495*** (5.34)
Awards	0.0877*** (8.52)	0.0313*** (4.95)
Diversity	0.0008*** (2.71)	−0.008*** (−4.81)
Institution	0.3439** (2.16)	−0.0422 (−0.56)
GDP	−0.1505*** (−3.49)	−0.0067 (−0.31)
Civil	0.3088*** (17.71)	0.0104 (0.65)
Indcoun_framework	0.6633*** (11.09)
Yearcoun_framework	0.7528*** (4.95)
Constant	−0.1680 (−0.32)	0.4938* (1.94)
Year_FE	Yes	Yes
Industry_FE	Yes	Yes
Country_FE	Yes	Yes
N	2,443	2,443
F	66.41	53.34
Uncentered R²	0.9040	0.9787
Underindentification		139.956
Weak identification test		72.863
Sargan statistic		0.536(0.4643)

Note(s): Table 9 reports the results on the first stage of instrumental variable using FRAMEWORK as a dependent variable. The second stage results on the effect of harmonisation and multiple global CSR pronouncements, controlling for predicted FRAMEWORK score obtained in first stage. All variable definitions appear in Appendix. ***, ** and * represent statistical significance at the 1, 5 and 10% levels, respectively (two-tailed tests)

Source(s): Table by author(s)

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