Skip to main content

Table 5 ESG-FP relationship in quadratic 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 Random Fixed Max-likelihood Random Fixed Max-likelihood Max-likelihood
Independent variable ROE ROE ROE ROE Stock Return Stock Return Stock Return Stock Return
EDS -0.280* (0.148) -0.413** (0.169) -0.610*** (0.228) -0.428** (0.175) -0.00527 (0.00828) -0.0165 (0.0123) -0.0123* (0.00728) 0.0568* (0.0327)
EDS _sq 0.00224 (0.00163) 0.00338 (0.00222) 0.00675** (0.00315) 0.00348 (0.00231) 0.000157 (0.000108) 0.000297* (0.000170) 0.000196** (0.0000954) 0.000356 (0.000254)
SDS 0.297 (0.304) 0.218 (0.264) 0.116 (0.310) 0.196 (0.269) 0.0109 (0.0127) -0.00215 (0.0168) 0.00694 (0.0119) 0.0100 (0.0307)
SDS_sq -0.00294 (0.00301) -0.00231 (0.00290) -0.00280 (0.00367) -0.00213 (0.00297) -0.0000781 (0.000139) 0.000169 (0.000199) -0.0000740 (0.000129) -0.000377 (0.000297)
GDS 3.702*** (1.358) 4.134*** (1.394) -1.182 (1.632) 3.920*** (1.450) 0.105 (0.0665) 0.121 (0.0884) 0.130** (0.0619) 0.0105 (0.0897)
GDS_sq -0.0327*** (0.0124) -0.0351*** (0.0131) 0.0149 (0.0152) -0.0329** (0.0136) -0.00107* (0.000623) -0.00130 (0.000820) -0.00116** (0.000583) 0.000612 (0.00114)
Leverage -25.09*** (7.277) -25.11*** (3.892) -112.2*** (11.65) -28.39*** (5.159) 0.152 (0.180) 1.397** (0.622) 0.0821 (0.146) 0.0915 (0.142)
Asset Size 1.186 (0.800) 1.079 (0.657) 5.447* (3.287) 1.349* (0.758) -0.0895*** (0.0315) -0.982*** (0.178) -0.0782*** (0.0264) -0.0736*** (0.0264)
L.ROE 0.371*** (0.102) 0.364*** (0.0429) 0.0210 (0.0491) 0.297*** (0.0643)     
D 5.878*** (1.447)     0.461*** (0.0719)    
L. Stock Return      -0.0434 (0.0400) -0.166*** (0.0431) 0.0777 (0.0578) 0.101* (0.0604)
EDS_SDS         0.000750* (0.000405)
EDS_GDS         -0.00212** (0.000917)
SDS_GDS         -0.0000175 (0.000850)
Constant -122.9*** (46.88) -129.2*** (37.17) -70.63 (103.2) -129.0*** (38.33) -0.237 (1.770) 24.90*** (5.586) -1.117 (1.602) 0.708 (1.859)
N 564 564 564 658 564 564 658 658
R 2 0.269 0.249 0.201   0.096 0.117   
  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