Table 8. Moderating effects Variables...

Table 8.

Moderating effects

Variables	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
Variables	ESG	ESG	E	E	S	S	G	G
Panel A: External regulation, 2017 NZX Corporate Governance Code
Retire	$- 0.170$ *** (⁠ $- 3.818$ ⁠)	$- 0.326$ *** (⁠ $- 6.846$ ⁠)	$- 0.225$ (⁠ $- 0.834$ ⁠)	$- 0.201$ (⁠ $- 0.696$ ⁠)	$- 0.032$ (⁠ $- 0.278$ ⁠)	$- 0.521$ *** (⁠ $- 3.715$ ⁠)	$- 0.087$ ** (⁠ $- 3.018$ ⁠)	$- 0.237$ *** (⁠ $- 6.374$ ⁠)
2017D&Retire		0.233*** (6.331)		$- 0.036$ (⁠ $- 0.355$ ⁠)		0.731*** (3.730)		0.224*** (6.509)
2017D	0.228*** (3.569)	0.217*** (3.626)	1.113** (3.247)	1.114*** (3.253)	0.837*** (3.542)	0.801*** (3.454)	$- 0.003$ (⁠ $- 0.068$ ⁠)	$- 0.014$ (⁠ $- 0.349$ ⁠)
Controls	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Industry FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Year FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Observations	514	514	514	514	514	514	514	514
Adjusted R-squared	0.559	0.567	0.592	0.591	0.462	0.474	0.264	0.283
Panel B: Internal governance – board gender diversity
Retire	$- 0.170$ *** (⁠ $- 3.818$ ⁠)	$- 0.468$ *** (⁠ $- 14.607$ ⁠)	$- 0.225$ (⁠ $- 0.834$ ⁠)	$- 0.059$ (⁠ $- 0.191$ ⁠)	$- 0.032$ (⁠ $- 0.278$ ⁠)	$- 0.866$ *** (⁠ $- 6.131$ ⁠)	$- 0.087$ ** (⁠ $- 3.018$ ⁠)	$- 0.407$ *** (⁠ $- 11.008$ ⁠)
$Female \times Retire$		0.885*** (8.023)		$- 0.494$ (⁠ $- 1.399$ ⁠)		2.478*** (4.631)		0.951*** (10.492)
Female	0.232** (2.815)	0.163(1.297)	1.282** (3.069)	1.320*** (3.266)	0.381(0.863)	0.186 (0.346)	0.088(1.231)	0.014 (0.150)
Controls	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Industry FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Year FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Observations	514	514	514	514	514	514	514	514
Adjusted R-squared	0.559	0.569	0.592	0.591	0.462	0.474	0.264	0.296
Panel C: Internal governance – board independence
Retire	$- 0.170$ *** (⁠ $- 3.818$ ⁠)	$- 0.894$ *** (⁠ $- 9.150$ ⁠)	$- 0.225$ (⁠ $- 0.834$ ⁠)	$- 0.717$ (⁠ $- 1.626$ ⁠)	$- 0.032$ (⁠ $- 0.278$ ⁠)	$- 1.128$ *** (⁠ $- 3.273$ ⁠)	$- 0.087$ ** (⁠ $- 3.018$ ⁠)	$- 0.696$ *** (⁠ $- 8.214$ ⁠)
$Indep \times Retire$		0.880*** (7.230)		0.599 (1.684)		1.332** (3.120)		0.739*** (7.479)
Indep	0.191 (1.486)	0.144 (1.218)	0.967** (3.080)	0.934** (3.071)	$- 0.087$ (⁠ $- 0.272$ ⁠)	$- 0.159$ (⁠ $- 0.544$ ⁠)	0.164(1.269)	0.124 (0.913)
Control	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Industry FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Year FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Observations	514	514	514	514	514	514	514	514
Adjusted R-squared	0.559	0.573	0.592	0.591	0.462	0.466	0.264	0.289
Panel D: Financial constraints
Retire	$- 0.108$ *** (⁠ $- 3.507$ ⁠)	4.258*** (6.984)	$- 0.171$ (⁠ $- 0.742$ ⁠)	5.576 (1.757)	0.034 (0.284)	1.641 (0.954)	$- 0.062$ (⁠ $- 1.553$ ⁠)	2.698*** (6.203)
$SA \times Retire$		1.354*** (7.299)		1.782* (1.920)		0.499 (0.956)		0.856*** (6.817)
SA	$- 0.636$ *** (⁠ $- 3.463$ ⁠)	$- 0.677$ *** (⁠ $- 4.169$ ⁠)	$- 3.688$ *** (⁠ $- 5.382$ ⁠)	$- 3.743$ *** (⁠ $- 5.257$ ⁠)	$- 1.503$ *** (⁠ $- 3.508$ ⁠)	$- 1.518$ *** (⁠ $- 3.512$ ⁠)	$- 0.201$ (⁠ $- 1.610$ ⁠)	$- 0.227$ * (⁠ $- 2.206$ ⁠)
Controls	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Industry FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Year FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Observations	514	514	514	514	514	514	514	514
Adjusted R-squared	0.491	0.498	0.555	0.555	0.438	0.437	0.253	0.261

Variables	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
Variables	ESG	ESG	E	E	S	S	G	G
Panel A: External regulation, 2017 NZX Corporate Governance Code
Retire	$- 0.170$ *** ( $- 3.818$ )	$- 0.326$ *** ( $- 6.846$ )	$- 0.225$ ( $- 0.834$ )	$- 0.201$ ( $- 0.696$ )	$- 0.032$ ( $- 0.278$ )	$- 0.521$ *** ( $- 3.715$ )	$- 0.087$ ** ( $- 3.018$ )	$- 0.237$ *** ( $- 6.374$ )
2017D&Retire		0.233*** (6.331)		$- 0.036$ ( $- 0.355$ )		0.731*** (3.730)		0.224*** (6.509)
2017D	0.228*** (3.569)	0.217*** (3.626)	1.113** (3.247)	1.114*** (3.253)	0.837*** (3.542)	0.801*** (3.454)	$- 0.003$ ( $- 0.068$ )	$- 0.014$ ( $- 0.349$ )
Controls	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Industry FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Year FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Observations	514	514	514	514	514	514	514	514
Adjusted R-squared	0.559	0.567	0.592	0.591	0.462	0.474	0.264	0.283
Panel B: Internal governance – board gender diversity
Retire	$- 0.170$ *** ( $- 3.818$ )	$- 0.468$ *** ( $- 14.607$ )	$- 0.225$ ( $- 0.834$ )	$- 0.059$ ( $- 0.191$ )	$- 0.032$ ( $- 0.278$ )	$- 0.866$ *** ( $- 6.131$ )	$- 0.087$ ** ( $- 3.018$ )	$- 0.407$ *** ( $- 11.008$ )
$Female \times Retire$		0.885*** (8.023)		$- 0.494$ ( $- 1.399$ )		2.478*** (4.631)		0.951*** (10.492)
Female	0.232** (2.815)	0.163(1.297)	1.282** (3.069)	1.320*** (3.266)	0.381(0.863)	0.186 (0.346)	0.088(1.231)	0.014 (0.150)
Controls	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Industry FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Year FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Observations	514	514	514	514	514	514	514	514
Adjusted R-squared	0.559	0.569	0.592	0.591	0.462	0.474	0.264	0.296
Panel C: Internal governance – board independence
Retire	$- 0.170$ *** ( $- 3.818$ )	$- 0.894$ *** ( $- 9.150$ )	$- 0.225$ ( $- 0.834$ )	$- 0.717$ ( $- 1.626$ )	$- 0.032$ ( $- 0.278$ )	$- 1.128$ *** ( $- 3.273$ )	$- 0.087$ ** ( $- 3.018$ )	$- 0.696$ *** ( $- 8.214$ )
$Indep \times Retire$		0.880*** (7.230)		0.599 (1.684)		1.332** (3.120)		0.739*** (7.479)
Indep	0.191 (1.486)	0.144 (1.218)	0.967** (3.080)	0.934** (3.071)	$- 0.087$ ( $- 0.272$ )	$- 0.159$ ( $- 0.544$ )	0.164(1.269)	0.124 (0.913)
Control	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Industry FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Year FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Observations	514	514	514	514	514	514	514	514
Adjusted R-squared	0.559	0.573	0.592	0.591	0.462	0.466	0.264	0.289
Panel D: Financial constraints
Retire	$- 0.108$ *** ( $- 3.507$ )	4.258*** (6.984)	$- 0.171$ ( $- 0.742$ )	5.576 (1.757)	0.034 (0.284)	1.641 (0.954)	$- 0.062$ ( $- 1.553$ )	2.698*** (6.203)
$SA \times Retire$		1.354*** (7.299)		1.782* (1.920)		0.499 (0.956)		0.856*** (6.817)
SA	$- 0.636$ *** ( $- 3.463$ )	$- 0.677$ *** ( $- 4.169$ )	$- 3.688$ *** ( $- 5.382$ )	$- 3.743$ *** ( $- 5.257$ )	$- 1.503$ *** ( $- 3.508$ )	$- 1.518$ *** ( $- 3.512$ )	$- 0.201$ ( $- 1.610$ )	$- 0.227$ * ( $- 2.206$ )
Controls	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Industry FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Year FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Observations	514	514	514	514	514	514	514	514
Adjusted R-squared	0.491	0.498	0.555	0.555	0.438	0.437	0.253	0.261

Note(s):

This table reports the regression results exploring how the 2017 NZX Corporate Governance Code (Panel A), proportion of female directors on the board (Panel B), proportion independent directors on the board (Panel C) and financial constraints (Panel D) moderates the relationship between ESG disclosure and retirement village dummy. ESG is the natural logarithm of ESG disclosure score plus one. Retire is an indicator variable that takes a value of one if the firms belong to retirement village industry, and zero otherwise. 2017D is a dummy variable that equals to one if the observation year is 2017 or after and zero otherwise. Female is the ratio of female directors to total directors, while Indep is the ratio of independent directors to total directors. Control variables are the same as in Table 4 (in Panel D, as the financial constraints index SA is the variable of interest both Size and Age are excluded from the controls). We estimate the regression with industry and year fixed effects. The standard errors in parentheses are clustered at industry level. Continuous variables are winsorised at the 1st and 99th percentiles. *, ** and *** denote significance at the 10, 5 and 1% levels, respectively

Source(s): Authors’ own work

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