Table 11. Placebo test.
| VARIABLES | (1) | (2) | (3) |
|---|---|---|---|
| ESG | ESG | ESG | |
| L2PT | -0.0178 | ||
| (-0.977) | |||
| L2Mayor | -0.0232 | ||
| (-1.340) | |||
| L2Psecretary | -0.0226 | ||
| (-1.306) | |||
| Size | 0.2918*** | 0.2919*** | 0.2919*** |
| (3.493) | (3.498) | (3.498) | |
| Lev | -0.5011*** | -0.5015*** | -0.5012*** |
| (-7.604) | (-7.608) | (-7.606) | |
| ROA | 0.4266*** | 0.4257*** | 0.4274*** |
| (3.067) | (3.060) | (3.074) | |
| Growth | -0.0947*** | -0.0947*** | -0.0946*** |
| (-6.972) | (-6.967) | (-6.961) | |
| Indep | 0.0077 | 0.0062 | 0.0091 |
| (0.038) | (0.031) | (0.045) | |
| TobinQ | -0.0049 | -0.0049 | -0.0049 |
| (-0.693) | (-0.691) | (-0.694) | |
| Duality | 0.0307 | 0.0306 | 0.0307 |
| (1.614) | (1.610) | (1.614) | |
| Top10 | 0.3672*** | 0.3674*** | 0.3673*** |
| (6.526) | (6.529) | (6.527) | |
| Age | 0.0953* | 0.0955* | 0.0954* |
| (1.704) | (1.707) | (1.705) | |
| Per capita GDP | 0.0061* | 0.0061* | 0.0062* |
| (1.760) | (1.743) | (1.774) | |
| Constant | -1.2001* | -1.2016* | -1.2039* |
| (-1.933) | (-1.936) | (-1.939) | |
| Year & Firm | Yes | Yes | Yes |
| Observations | 23,391 | 23,391 | 23,391 |
| R2 | 0.230 | 0.230 | 0.230 |
| Adj-R2 | 0.226 | 0.226 | 0.226 |
Note. This table reports the results of the placebo test from OLS regression. The dependent variable is ESG, and the independent variables in column (1), column (2) and column (3) are L2PT, L2Mayor, and L2Psecretary respectively. Firm-fixed effects and year-fixed effects are also included. The t values reported in parentheses are adjusted based on robust standard errors clustered by firm, where *, **, and *** denote significance levels of 0.01, 0.05, and 0.10 respectively. All variables are defined in Appendix A in S1 Table.