Mechanism test – internal control quality
| (1) | (2) | (3) | (4) | |
|---|---|---|---|---|
| Icq1 | ESG | Icq2 | ESG | |
| CEO_nar | −0.022* | −0.028* | ||
| (−1.73) | (−1.87) | |||
| pred_Icq1 | 1.991** | |||
| (2.16) | ||||
| pred_Icq2 | 1.534** | |||
| (2.16) | ||||
| Controls | Yes | Yes | Yes | Yes |
| Ind FE | Yes | Yes | Yes | Yes |
| Year FE | Yes | Yes | Yes | Yes |
| Cluster by Firm | Yes | Yes | Yes | Yes |
| Observations | 8,354 | 8,354 | 8,354 | 8,354 |
| Adj. R2 | 0.25 | 0.14 | 0.30 | 0.14 |
| (1) | (2) | (3) | (4) | |
|---|---|---|---|---|
| Controls | Yes | Yes | Yes | Yes |
| Ind FE | Yes | Yes | Yes | Yes |
| Year FE | Yes | Yes | Yes | Yes |
| Cluster by Firm | Yes | Yes | Yes | Yes |
| Observations | 8,354 | 8,354 | 8,354 | 8,354 |
| Adj. | 0.25 | 0.14 | 0.30 | 0.14 |
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
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