Robustness Results
Equity SpecificationIndustry FEYear FEClustered SEs
Table: Workforce ESG Performance — Equity-Based Robustness
Industry and year fixed effects included. Standard errors clustered by firm.
(1) H1: Profitability (ROE) | (2) H2: Financial Slack (Residual Cash-to-Equity) | (3) H3: Both Conditions | (4) H3: Joint Condition (Interaction) | |
|---|---|---|---|---|
| ROE (t-1) | 0.251*** (0.091) | — | 0.227* (0.130) | 0.364** (0.154) |
| Residual Cash-to-Equity (t-1) | — | 0.286 (0.326) | 0.235 (0.257) | 0.629 (0.478) |
| ROE × Residual Cash-to-Equity (t-1) | — | — | — | 0.012 (0.009) |
| Firm Size (t-1) | 7.118*** (0.375) | 7.133*** (0.376) | 7.126*** (0.376) | 7.134*** (0.376) |
| Leverage (t-1) | −7.169 (4.794) | −7.298 (4.802) | −7.321 (4.797) | −7.555 (4.799) |
| Firm Age (t-1) | 0.023 (0.030) | 0.023 (0.030) | 0.023 (0.030) | 0.022 (0.030) |
| Num. Obs. | 5550 | 5550 | 5550 | 5550 |
| R² | 0.359 | 0.359 | 0.359 | 0.359 |
| R² Adj. | 0.350 | 0.350 | 0.350 | 0.350 |
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 — Equity Interaction Model
ROE (t-1)
0.36
Residual Cash-to-Equity
0.63
ROE × Residual Cash-to-Equity
0.01
Firm Size (t-1)
7.13
Leverage (t-1)
-7.55
Firm Age (t-1)
0.02
sig. positive sig. negative not significantWhiskers = 95% CI