Workforce ESG Research

Main Results

Panel DataIndustry FEYear FEClustered SEsLagged VarsInteraction

Table: Financial Conditions and Workforce ESG Performance

Industry and year fixed effects included. Standard errors clustered by firm.

 
(1)
H1: Profitability (ROA)
(2)
H2: Financial Slack (Residual Cash)
(3)
H3: Both Conditions
(4)
H3: Joint Condition (Interaction)
(R-A1)
ROA — Firm FE
(R-A2)
Cash — Firm FE
(R-B)
ROE × Cash-to-Equity
(R-C)
Social Score DV
ROA (t-1)
8.212**
(3.819)
—
8.164**
(3.805)
9.079**
(4.421)
2.317
(1.732)
——
0.900
(3.171)
Residual Cash (t-1)—
10.790
(6.567)
10.732*
(6.493)
10.852*
(6.402)
—
10.844**
(4.279)
—
6.542
(5.614)
ROA × Residual Cash (t-1)———
23.664
(24.673)
————
Firm Size (t-1)
6.918***
(0.402)
6.987***
(0.403)
6.909***
(0.399)
6.904***
(0.400)
4.109***
(1.482)
4.153***
(1.462)
7.134***
(0.376)
6.438***
(0.354)
Leverage (t-1)
−6.275
(4.793)
−7.193
(4.814)
−6.292
(4.793)
−5.977
(4.785)
2.597
(3.617)
1.807
(3.574)
−7.555
(4.799)
−1.490
(3.964)
Firm Age (t-1)
0.025
(0.029)
0.024
(0.029)
0.024
(0.029)
0.024
(0.029)
——
0.022
(0.030)
0.067***
(0.024)
ROE (t-1)——————
0.364**
(0.154)
—
Cash-to-Equity (t-1)——————
0.629
(0.478)
—
ROE × Cash-to-Equity (t-1)——————
0.012
(0.009)
—
Num. Obs.55525552555255525552555255505552
R²0.3570.3570.3580.3590.8290.8300.3590.431
R² Adj.0.3480.3480.3490.3490.7990.8000.3500.423

Significance: * p < 0.1, ** p < 0.05, *** p < 0.01. Hover any column header, row label, coefficient, standard error, or R² value for a plain-English explanation.

Coefficients — Interaction Model (Column 4)

ROA (t-1)
9.08
Residual Cash (t-1)
10.85
ROA × Residual Cash
23.66
Firm Size (t-1)
6.90
Leverage (t-1)
-5.98
Firm Age (t-1)
0.02
sig. positive sig. negative not significantWhiskers = 95% CI

ROA Interaction Plot

Econometric interaction plot for ROA and residual cash from the study.

ROA Interaction Plot

Figure reflects the ROA interaction specification used in the main results.