Table 2.

Environmental performance and financial constraints.

	Ratings	Size	Dividends	Kaplan–Zingales score	Size–Age score	Ratings	Ratings
	(1)	(2)	(3)	(4)	(5)	(6)	(7)
Financial constraint measure	−3.226***	−9.848***	−4.111***	−1.656***	−2.818***	−3.107***	−1.764***
	(0.490)	(0.177)	(0.532)	(0.470)	(0.576)	(0.498)	(0.433)
Control variables	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Country, Sector, and time fixed effects	Yes	Yes	Yes	Yes	Yes	No	No
Country-time, sector fixed effects	No	No	No	No	No	Yes	No
Firm and time fixed effects	No	No	No	No	No	No	Yes
R2	0.491	0.489	0.493	0.480	0.490	0.505	0.445
Observations	54,106	54,106	53,482	46,853	54,106	54,106	54,461
# of firms	7016	7016	6925	6144	7016	7016	7080

This table reports regression estimates of environmental scores on measures of financial constraints and control variables. The data are from Refinitiv Datastream and Standard and Poor’s. “Size” is the log of total assets, and the sign of this variable is reversed so that higher values indicate smaller firms). All right-hand side variables are lagged by one year. Control variables are firm size (log of total assets) and firm profitability (earnings before interest expense and income taxes). Standard errors are clustered at the firm level. ***, **, or * indicates that the coefficient estimate is significant at the 1%, 5%, or 10% level, respectively.