Table 9

Mechanism test – internal control quality

(1)(2)(3)(4)
Icq1ESGIcq2ESG
CEO_nar−0.022* −0.028* 
(−1.73) (−1.87) 
pred_Icq1 1.991**  
 (2.16)  
pred_Icq2   1.534**
   (2.16)
ControlsYesYesYesYes
Ind FEYesYesYesYes
Year FEYesYesYesYes
Cluster by FirmYesYesYesYes
Observations8,3548,3548,3548,354
Adj. R20.250.140.300.14

Note(s): Table 9 reports whether the effect of CEO narcissism on corporate ESG performance is realized through the pathway of lower internal control quality. pred_Icq1 and pred_Icq2 denote the predicted values of internal control quality in the first stage, respectively. Other variables are defined in Table 1. All regressions are firm-level clustered robust standard errors. *, ** and *** denote significance at the 10%, 5% and 1% levels, respectively

Source(s): Authors’ own work

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