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Table 4 ESG-FP relationship in linear models

From: Empirical study on relationship between corporate social responsibility and financial performance in Korea

Specification (1) (2) (3) (4) (5) (6) (7) (8)
Pooled OLS Pooled OLS Random Fixed Max-Likelihood Pooled OLS Random Max-Likelihood
Independent variable ROE ROE ROE ROE ROE MBR Stock Return Stock Return
EDS -0.121* (0.0621) 0.197 (0.361) 0.152 (0.451) -0.575 (0.600) 0.170 (0.465) -0.000281 (0.00147) 0.00727 (0.0223) 0.00477 (0.0196)
SDS 0.0529 (0.0715) 0.654 (0.462) 0.532 (0.515) -0.494 (0.628) 0.410 (0.538) 0.000295 (0.00136) 0.0228 (0.0254) 0.0297 (0.0231)
GDS 0.241* (0.134) 1.159*** (0.446) 1.395*** (0.485) -0.265 (0.613) 1.318*** (0.506) 0.00831** (0.00382) 0.0611** (0.0239) 0.0620*** (0.0214)
Leverage -23.97*** (7.290) -25.09*** (7.372) -25.16*** (3.887) -113.6*** (11.68) -28.54*** (5.252) 0.0302 (0.0686) 0.150 (0.185) 0.0783 (0.148)
Size 1.235 (0.829) 1.240 (0.816) 1.109* (0.658) 4.549 (3.275) 1.364* (0.753) -0.0618*** (0.0147) -0.103*** (0.0325) -0.0827*** (0.0269)
D 5.913*** (1.546) 6.094*** (1.466)     0.00616 (0.0251)   
L.ROE 0.383*** (0.102) 0.376*** (0.102) 0.370*** (0.0429) 0.0271 (0.0492) 0.307*** (0.0650)    
EDS_SDS   0.00476 (0.00439) 0.00697 (0.00489) -0.00142 (0.00548) 0.00659 (0.00495)   0.000691*** (0.000242) 0.000602*** (0.000227)
EDS_GDS   -0.0101 (0.00851) -0.0120 (0.0102) 0.00910 (0.0131) -0.0122 (0.0104)   -0.000660 (0.000504) -0.000542 (0.000455)
SDS_GDSs   -0.0144* (0.00844) -0.0141 (0.0103) 0.00795 (0.0128) -0.0117 (0.0108)   -0.000822 (0.000508) -0.000924** (0.000455)
L.MBR       0.916*** (0.0603)   
L.StockReturn        -0.0388 (0.0414) 0.0593 (0.0544)
Constant -34.00 (22.32) -72.87** (33.60) -73.88*** (24.60) -55.33 (97.83) -75.39*** (25.88) 1.449*** (0.348) 0.693 (1.215) 0.0491 (1.046)
N 564 564 564 564 658 564 564 658
R 2 0.259 0.266 0.244 0.194   0.784 0.032  
  1. The variables are EDS environmental disclosure score, SDS social disclosure score, GDS governance disclosure score, ROE return on equity, MBR market-to-book ratio implying Tobin q, Stock Return annual stock market return, Leverage leverage ratio as proxy for risk, Log (Asset size) log value of asset size, D dummy variable for financial crisis, L.xxx lagged variable, xxx_xxx cross-term
  2. P-values in parentheses: * p b 0.1, ** p b 0.05, *** p b 0.01
  3. Data source: Bloomberg