Table 10. Further analysis Variables (1)...

Table 10.

Further analysis

Variables	(1)	(2)
Variables	Tobin’s $Q_{t + 1}$	Cost of $deb t_{t + 1}$
Retire	$- 2.194$ *** (⁠ $- 9.632$ ⁠)	$- 0.054$ *** (⁠ $- 3.486$ ⁠)
Retire* $ΔESG$	0.933** (2.820)	$- 0.029$ * (⁠ $- 2.154$ ⁠)
$ΔESG$	$- 0.137$ (⁠ $- 0.498$ ⁠)	0.016 (0.900)
ROA	3.134 (1.712)	$- 0.023$ (⁠ $- 0.777$ ⁠)
Tobin’s Q		0.001 (0.160)
Tangi	0.931 (1.478)	0.013 (0.898)
Grow	0.472 (1.541)	0.003 (0.213)
Lev	$- 0.039$ (⁠ $- 0.044$ ⁠)	$- 0.087$ ** (⁠ $- 3.031$ ⁠)
Size	$- 0.337$ ** (⁠ $- 2.324$ ⁠)	0.000 (0.017)
Age	0.058 (0.905)	$- 0.001$ (⁠ $- 0.620$ ⁠)
Board	0.805 (1.033)	$- 0.012$ (⁠ $- 1.376$ ⁠)
Female	0.010 (0.019)	0.005 (0.220)
Indep	$- 0.063$ (⁠ $- 0.198$ ⁠)	0.019 (1.215)
InsInvestor	0.036 (0.196)	0.022 (1.757)
Ar	$- 0.095$ *** (⁠ $- 3.314$ ⁠)	$- 0.006$ (⁠ $- 1.693$ ⁠)
Constant	1.683 (1.478)	0.118** (2.784)
Observations	331	331
Industry FE	Yes	Yes
Year FE	Yes	Yes
Adjusted R-squared	0.528	0.393

Variables	(1)	(2)
Variables	Tobin’s $Q_{t + 1}$	Cost of $deb t_{t + 1}$
Retire	$- 2.194$ *** ( $- 9.632$ )	$- 0.054$ *** ( $- 3.486$ )
Retire* $ΔESG$	0.933** (2.820)	$- 0.029$ * ( $- 2.154$ )
$ΔESG$	$- 0.137$ ( $- 0.498$ )	0.016 (0.900)
ROA	3.134 (1.712)	$- 0.023$ ( $- 0.777$ )
Tobin’s Q		0.001 (0.160)
Tangi	0.931 (1.478)	0.013 (0.898)
Grow	0.472 (1.541)	0.003 (0.213)
Lev	$- 0.039$ ( $- 0.044$ )	$- 0.087$ ** ( $- 3.031$ )
Size	$- 0.337$ ** ( $- 2.324$ )	0.000 (0.017)
Age	0.058 (0.905)	$- 0.001$ ( $- 0.620$ )
Board	0.805 (1.033)	$- 0.012$ ( $- 1.376$ )
Female	0.010 (0.019)	0.005 (0.220)
Indep	$- 0.063$ ( $- 0.198$ )	0.019 (1.215)
InsInvestor	0.036 (0.196)	0.022 (1.757)
Ar	$- 0.095$ *** ( $- 3.314$ )	$- 0.006$ ( $- 1.693$ )
Constant	1.683 (1.478)	0.118** (2.784)
Observations	331	331
Industry FE	Yes	Yes
Year FE	Yes	Yes
Adjusted R-squared	0.528	0.393

Note(s):

Table 10 indicates results of the effect of the interaction term between Retire dummy and ESG disclosure on firm value and cost of debt. ESG is the natural logarithm of one plus actual ESG score as downloaded from Bloomberg. Other variables are defined as in Appendix 1. 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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