1 Introduction
“The most fundamental criticism of CSR is that what executives spend on it is other people’s—i.e., shareholders’—money. They may mean well, and it may give them satisfaction to write a cheque for hurricane victims or disadvantaged youth, but that is not what they were hired to do. Their job is to make money for shareholders. It is irresponsible for them to sacrifice profits in the (sometimes vain) pursuit of goodness.” 1
2 Literature review and hypotheses development
2.1 Sustainability performance and cost of equity
2.2 Managerial values, preferences, and sustainability reporting
2.3 CEOs’ sustainability reporting style and cost of equity
3 Sample and methodology
3.1 Sample selection
Reduction | Sample size | |
---|---|---|
(1) Asset4 sample excluding financial and utilities industries | 14181 | |
(2) No sustainability performance data | 2007 | 12174 |
(3) Missing CEO data | 2910 | 9264 |
(4) Missing Compustat accounting data | 637 | 8627 |
(5) No CRSP return data | 875 | 7752 |
(6) No cost of equity data | 135 | 7617 |
(7) Missing data for board characteristics | 468 | 7149 |
(8) CEO-fixed effects estimation model | 7149 | |
(9) Less observations with no CEO-fixed effects (companies without CEO turnover) | 4087 | 3062 |
(10) Missing I/B/E/S analyst forecasts | 1377 | 1685 |
(11) Missing values due to using lead variables | 175 | 1510 |
(12) Cost of equity and CEO-fixed effects model | 1510 |
3.2 Measuring the quality of sustainability reporting
Item | Name | Description | Related studies | |
---|---|---|---|---|
SRS1 | Separate Sustainability Report (Section) | Value 1 if the company publishes a separate sustainability report or a minimum five-page section on sustainability in its annual report; 0 otherwise. | ||
SRS2 | GRI Report Guidelines | Value 1 if the company has published a sustainability report in accordance with the GRI guidelines; 0 otherwise. | ||
SRS3 | Integrated MD&A | Value 1 if the company explicitly integrates financial and extra-financial factors in its management discussion and analysis (MD&A) section in the annual report; 0 otherwise. | ||
SRS4 | Stakeholder Engagement | Value 1 if the company explains how it engages with its stakeholders; 0 otherwise. | ||
SRS5 | Global Activities | Value 1 if the company’s extra-financial report takes the global activities of the company into account; 0 otherwise. | Sobczak and Coelho Martins (2010) | |
SR | Calculated as the sum of all SRS item values, divided by the number of all available SRS items. Thus, SR ranges between 0 and 1. A minimum of three out of five items is required for SR. |
3.3 CEOs’ style of sustainability reporting
BASPREAD = Bid/ask spread calculated as the yearly average of the difference between ask and bid price, scaled by the ask price BETA = Annual market model beta using daily return data of the common shares and the value-weighted daily return of all US companies BOARD CSR_COMP = Indicator variable that equals 1 if the senior executives compensation is linked to sustainability targets. If a company changes their compensation scheme within a year we weight the dummy according to the remaining months of the financial year BOARD LT_COMP = The maximum time horizon in years of the board member’s targets to reach full compensation GENDER_DIV = Percentage of females on the board BOARD BOARD INDEPENDENT = Percentage of independent board members as reported by the company CEOFE = CEO-fixed effects sorted into tercile ranks according to their yearly across-sample rank. The fixed effects are estimated in Model (1b) using the mover dummy approach CEOAGE = CEO age defined as the natural logarithm plus one of the CEO’s age CEOTEN = The tenure of the CEO is calculated as the difference in years between the current year and the date on which the CEO started in the current position CEO_DCHAIR = Indicator variable that equals 1 if the CEO simultaneously chairs the board or the the chairman of the board has been the CEO of the company CFOEXP = Indicator variable that equals 1 if an individual served as CFO in the same company before taking office as CEO; 0 otherwise COEC = Cost of equity following the approach outlined in Hou et al. (2012). We take the average value of all available cost of equity values both using actual earnings numbers (model-based forecasts) as well as analyst’s earnings forecast estimated with five different cost of equity measures: Claus and Thomas (2001), Gebhardt et al. (2001), Gordon and Gordon (1997), MPEG/Easton (2004), and Ohlson and Juettner-Nauroth (2005) CEO_POWER = Defined as the total CEO pay, divided by the sum of the total pay of the top five executives (Bauer et al. 2021) CSO = Indicator variable that equals 1 if the company has a chief sustainability officer on their board; 0 otherwise DISP = Spread of analyst forecasts measured as the logarithm of the standard deviation of analysts’ earnings per share forecast scaled by the consensus forecast EXTERNAL ASSURANCE = Indicator variable that equals 1 if the company has commissioned a third party to provide external assurance for its sustainability report; 0 otherwise EM = Earnings management as the absolute value of abnormal accruals estimated with the modified Jones model, following Dechow et al. (1995) FIN = Variable that measures a firms’ financing activities in a year. Calculated as sale of common and preferred shares, reduced by repurchases of common and preferred shares, plus long-term debt issuance minus long-term debt reduction, all scaled by lagged total assets at the beginning of a year GLOBAL = Indicator variable equaling 1 if a company reports foreign income; 0 otherwise GLOBAL COMPACT = Indicator variable that equals 1 if the company has signed the UN Global Compact; 0 otherwise HHI = Herfindahl-Hirschmann Index calculated for each SIC2 industry to proxy for competition intensity in an industry. It is calculated as the sum of the squared shares of sales of the 50 firms with the largest sales within a SIC2 industry. In case there are fewer than 50 firms in an industry in a year, all squared sales-shares are used LEV = Ratio between total debt and total assets at year-end LIQUIDITY = Liquidity of a company defined as the ratio between the number of a firms’ shares traded during the year and the number of total shares of a company outstanding at year-end LTGROWTH = Long-term growth rate calculated as the difference between two-year and one-year ahead I/B/E/S earnings per share according to analyst consensus forecast MFCAST = Indicator variable that equals 1 if a firm has issued at least one management forecast in year t; 0 otherwise MTB = Ratio of market value of common equity divided by the book value of common equity at year-end ROA = Income before extraordinary items scaled by lagged total assets at a year’s beginning SIZE = Defined as the natural logarithm of a firm’s equity market capitalization at year-end SR = Annual average score of monthly measured quality of sustainability reporting. The score comprises five elements that capture sustainability reporting: SR Report (Section), GRI Report Guidelines, Integrated MD&A, Stakeholder Engagement, Global Activities. Each item is an indicator variable that equals 1 if the item is reported/given for a company and 0 otherwise. The score is calculated as the average of all item values for which at least three items need to be available SP = Asset4 measure that captures the sustainability performance of a firm comprising around 150 sustainability performance indicators based on approximately 375 data points in the fields of environmental, social, and corporate governance performance VOL = Annual standard deviation of the share’s (midpoint) price |
This table defines all variables used in the main models. All continuous variables are winsorized at the 1st and 99th percentile |
3.4 CEO-fixed effects and future cost of equity
4 Main results
4.1 Descriptive statistics
Variable | N | Mean | S. Dev | 25% | Median | 75% |
---|---|---|---|---|---|---|
Panel A: CEO-fixed effects estimation model | ||||||
SRi,t | 7149 | 0.2826 | 0.3387 | 0.0000 | 0.0000 | 0.6000 |
SPi,t | 7149 | 0.4138 | 0.1912 | 0.2627 | 0.3793 | 0.5488 |
SIZEi,t | 7149 | 8.6643 | 1.4074 | 7.6845 | 8.5189 | 9.5495 |
LIQUIDITYi,t | 7149 | 2.5424 | 1.6420 | 1.4258 | 2.0825 | 3.1322 |
FINi,t | 7149 | − 0.0008 | 0.1381 | − 0.0607 | − 0.0174 | 0.0172 |
ROAi,t | 7149 | 0.0745 | 0.0776 | 0.0349 | 0.0699 | 0.1117 |
HHIi,t | 7149 | 0.0808 | 0.0620 | 0.0471 | 0.0597 | 0.0830 |
EMi,t | 7149 | 0.0003 | 0.0731 | − 0.0339 | − 0.0008 | 0.0312 |
MFCASTi,t | 7149 | 0.9203 | 0.2709 | 1.0000 | 1.0000 | 1.0000 |
LEVi,t | 7149 | 0.2268 | 0.1612 | 0.1009 | 0.2209 | 0.3312 |
MTBi,t | 7149 | 4.5542 | 5.6014 | 1.9656 | 3.0495 | 4.8734 |
COECi,t | 7149 | 0.0564 | 0.0324 | 0.0356 | 0.0502 | 0.0693 |
GLOBALi,t | 7149 | 1.6836 | 0.9151 | 1.0986 | 1.7918 | 2.3979 |
CEOTENi,k,t | 7149 | 4.0505 | 0.1177 | 3.9703 | 4.0604 | 4.1271 |
CEOAGEk,t | 7149 | 0.7573 | 0.4287 | 1.0000 | 1.0000 | 1.0000 |
CFOEXPi,k | 7149 | 0.0817 | 0.2739 | 0.0000 | 0.0000 | 0.0000 |
GLOBALCOMPACTi,t | 7149 | 0.0769 | 0.2665 | 0.0000 | 0.0000 | 0.0000 |
EXTERNALASSURANCEi,t | 7149 | 0.1077 | 0.3100 | 0.0000 | 0.0000 | 0.0000 |
CEO_POWERi,k,t | 7149 | 0.3214 | 0.0812 | 0.2851 | 0.3229 | 0.3583 |
CSOi,t | 7149 | 0.0460 | 0.2095 | 0.0000 | 0.0000 | 0.0000 |
CEO_DCHAIRi,t | 7149 | 0.6819 | 0.4543 | 0.0000 | 1.0000 | 1.0000 |
BOARD_CSR_COMPi,t | 7149 | 0.2045 | 0.3752 | 0.0000 | 0.0000 | 0.0833 |
BOARD_LT_COMPi,t | 7149 | 1.1204 | 1.3921 | 0.0000 | 1.0000 | 2.0000 |
BOARD_GENDER_DIVi,t | 7149 | 16.5102 | 10.3261 | 10.0000 | 15.5550 | 22.2550 |
BOARD_INDEPENDENTi,t | 7149 | 80.1161 | 12.1647 | 75.0000 | 83.3300 | 88.8900 |
Panel B: Cost of equity and CEO-fixed effects model | ||||||
COECi,t | 1510 | 0.058 | 0.027 | 0.039 | 0.053 | 0.073 |
SRi,t | 1510 | 0.276 | 0.332 | 0.000 | 0.000 | 0.556 |
CEOFEi,t | 1510 | 1.964 | 0.855 | 1.000 | 2.000 | 3.000 |
BASPREADi,t | 1510 | 0.001 | 0.001 | 0.000 | 0.001 | 0.001 |
VOLi,t | 1510 | 6.073 | 5.552 | 2.663 | 4.428 | 7.165 |
SPi,t | 1510 | 0.429 | 0.191 | 0.275 | 0.409 | 0.565 |
SIZEi,t | 1510 | 9.127 | 1.274 | 8.232 | 9.009 | 9.802 |
BETAi,t | 1510 | 1.091 | 0.382 | 0.836 | 1.067 | 1.339 |
LEVi,t | 1510 | 0.209 | 0.149 | 0.095 | 0.207 | 0.295 |
MTBi,t | 1510 | 4.244 | 4.098 | 2.170 | 3.280 | 4.883 |
LTGROWTHi,t | 1510 | 1.094 | 1.836 | 0.151 | 0.761 | 1.647 |
DISPi,t | 1510 | − 3.862 | 1.014 | − 4.575 | − 3.948 | − 3.263 |
Panel A | [1] | [2] | [3] | [4] | [5] | [6] | [7] | [8] | [9] | [10] | [11] | [12] | |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
SRi,t+1 | [1] | ||||||||||||
SPi,t | [2] | 0.750 | |||||||||||
SIZEi,t | [3] | 0.515 | 0.545 | ||||||||||
LIQUIDITYi,t | [4] | − 0.0550 | − 0.063 | − 0.160 | |||||||||
FINi,t | [5] | − 0.046 | − 0.091 | − 0.090 | − 0.019 | ||||||||
ROAi,t | [6] | 0.042 | 0.058 | 0.249 | − 0.036 | − 0.193 | |||||||
HHIi,t | [7] | − 0.034 | 0.010 | − 0.033 | 0.117 | − 0.079 | 0.021 | ||||||
EMi,t | [8] | − 0.016 | − 0.014 | − 0.001 | 0.010 | 0.105 | 0.100 | − 0.010 | |||||
MFCASTi,t | [9] | 0.119 | 0.170 | 0.137 | 0.050 | − 0.083 | 0.018 | 0.009 | − 0.041 | ||||
LEVi,t | [10]] | 0.124 | 0.089 | 0.054 | − 0.047 | 0.235 | − 0.249 | 0.000 | − 0.003 | 0.038 | |||
MTBi,t | [11] | 0.038 | 0.035 | 0.171 | − 0.044 | − 0.049 | 0.220 | − 0.036 | 0.003 | − 0.033 | 0.207 | ||
COECi,t | [12] | 0.077 | 0.025 | − 0.107 | 0.204 | 0.010 | − 0.133 | 0.061 | − 0.032 | − 0.006 | 0.128 | − 0.187 | |
GLOBALi,t | [13] | 0.162 | 0.170 | 0.159 | − 0.065 | − 0.024 | − 0.043 | − 0.235 | − 0.016 | 0.084 | 0.019 | 0.001 | − 0.060 |
CEOTENi,k,t | [14] | − 0.089 | − 0.073 | − 0.057 | − 0.001 | 0.011 | 0.091 | − 0.006 | 0.039 | − 0.039 | − 0.098 | 0.016 | − 0.112 |
CEOAGEk,t | [15] | 0.023 | 0.019 | 0.022 | − 0.072 | 0.007 | 0.027 | 0.003 | 0.005 | − 0.030 | 0.009 | − 0.027 | − 0.001 |
CFOEXPi,k | [16] | 0.051 | 0.047 | − 0.040 | 0.012 | 0.010 | − 0.047 | 0.045 | 0.012 | − 0.031 | 0.087 | 0.029 | 0.047 |
GPACTi,t | [17] | 0.365 | 0.375 | 0.267 | − 0.071 | − 0.029 | 0.016 | − 0.057 | 0.002 | 0.058 | 0.013 | 0.016 | 0.005 |
ASSUREi,t | [18] | 0.497 | 0.481 | 0.381 | − 0.103 | − 0.009 | 0.026 | − 0.045 | − 0.012 | 0.064 | 0.069 | 0.057 | 0.001 |
CEOPi,t | [19] | − 0.081 | − 0.125 | − 0.126 | − 0.061 | 0.032 | − 0.020 | − 0.053 | 0.015 | 0.027 | 0.056 | − 0.013 | 0.036 |
CSOi,t | [20] | 0.246 | 0.242 | 0.214 | − 0.048 | − 0.016 | 0.041 | 0.054 | 0.016 | 0.040 | 0.029 | 0.035 | 0.004 |
CDCHi,t | [21] | 0.041 | 0.005 | 0.136 | − 0.063 | − 0.052 | 0.076 | 0.047 | − 0.026 | 0.023 | − 0.022 | 0.005 | 0.002 |
BCSRCi,t | [22] | 0.312 | 0.357 | 0.232 | 0.008 | − 0.018 | − 0.026 | − 0.028 | − 0.009 | 0.073 | 0.073 | − 0.049 | 0.094 |
BLTCi,t | [23] | 0.049 | 0.127 | − 0.004 | 0.044 | 0.008 | 0.032 | − 0.069 | 0.032 | 0.022 | − 0.025 | 0.029 | − 0.096 |
BGDIVi,t | [24] | 0.283 | 0.378 | 0.187 | − 0.060 | − 0.074 | 0.005 | 0.056 | − 0.025 | 0.078 | 0.059 | 0.079 | − 0.033 |
BINDi,t | [25] | 0.244 | 0.333 | 0.099 | 0.038 | − 0.029 | − 0.004 | − 0.064 | − 0.020 | 0.119 | 0.060 | 0.029 | − 0.005 |
Panel A | [13] | [14] | [15] | [16] | [17] | [18] | [19] | [20] | [21] | [22] | [23] | [24] |
---|---|---|---|---|---|---|---|---|---|---|---|---|
SRi,t+1 | ||||||||||||
SPi,t | ||||||||||||
SIZEi,t | ||||||||||||
LIQUIDITYi,t | ||||||||||||
FINi,t | ||||||||||||
ROAi,t | ||||||||||||
HHIi,t | ||||||||||||
EMi,t | ||||||||||||
MFCASTi,t | ||||||||||||
LEVi,t | ||||||||||||
MTBi,t | ||||||||||||
COECi,t | ||||||||||||
GLOBALi,t | ||||||||||||
CEOTENi,k,t | − 0.077 | |||||||||||
CEOAGEk,t | − 0.041 | 0.386 | ||||||||||
CFOEXPi,k | − 0.012 | − 0.151 | − 0.084 | |||||||||
GPACTi,t | 0.114 | − 0.059 | − 0.011 | 0.017 | ||||||||
ASSUREi,t | 0.100 | − 0.047 | 0.029 | 0.046 | 0.365 | |||||||
CEOPi,t | − 0.022 | 0.028 | 0.024 | − 0.011 | − 0.071 | − 0.057 | ||||||
CSOi,t | 0.042 | − 0.026 | 0.033 | 0.090 | 0.162 | 0.219 | − 0.062 | |||||
CDCHi,t | − 0.027 | 0.114 | 0.116 | − 0.051 | 0.032 | 0.024 | 0.018 | 0.038 | ||||
BCSRCi,t | 0.077 | − 0.024 | 0.028 | 0.028 | 0.161 | 0.233 | − 0.024 | 0.121 | 0.044 | |||
BLTCi,t | 0.005 | 0.046 | 0.017 | 0.016 | 0.021 | 0.042 | − 0.022 | 0.022 | − − 0.029 | 0.022 | ||
BGDIVi,t | 0.057 | − 0.080 | 0.045 | 0.083 | 0.157 | 0.171 | − 0.078 | 0.106 | 0.016 | 0.081 | 0.005 | |
BINDi,t | 0.127 | − 0.018 | 0.005 | 0.018 | 0.098 | 0.127 | 0.034 | 0.030 | − 0.033 | 0.165 | 0.015 | 0.200 |
Panel B | [1] | [2] | [3] | [4] | [5] | [6] | [7] | [8] | [9] | [10] | [11] | |
---|---|---|---|---|---|---|---|---|---|---|---|---|
COECi,t+1 | [1] | |||||||||||
SRi,t | [2] | 0.069 | ||||||||||
CEOFEi,t | [3] | 0.024 | 0.212 | |||||||||
BASPi,t | [4] | 0.087 | − 0.226 | − 0.018 | ||||||||
VOLi,t | [5] | 0.049 | 0.007 | − 0.063 | − 0.075 | |||||||
SPi,t | [6] | − 0.047 | 0.769 | 0.112 | − 0.272 | − 0.030 | ||||||
SIZEi,t | [7] | − 0.082 | 0.455 | 0.031 | − 0.185 | 0.072 | 0.549 | |||||
BETAi,t | [8] | 0.080 | − 0.121 | 0.057 | − 0.097 | 0.162 | − 0.187 | − 0.237 | ||||
LEVi,t | [9] | 0.116 | 0.117 | − 0.020 | 0.076 | − 0.088 | 0.109 | 0.030 | − 0.157 | |||
MTBi,t | [10] | − 0.172 | 0.006 | − 0.021 | 0.016 | 0.068 | 0.063 | 0.196 | − 0.169 | 0.187 | ||
LTGi,t | [11] | 0.061 | 0.006 | − 0.074 | − 0.031 | 0.229 | 0.007 | 0.077 | − 0.009 | 0.030 | 0.015 | |
DISPi,t | [12] | 0.219 | − 0.001 | 0.029 | 0.132 | 0.002 | − 0.117 | − 0.197 | 0.391 | 0.015 | − 0.177 | − 0.041 |
4.2 Measuring CEOs’ sustainability reporting style
Dependent Variable: SRi,t+1 | (1) | (2) |
---|---|---|
Panel A: Regression results VARIABLES | ||
SPi,t | 0.791*** (0.045) | 0.667*** (0.051) |
SIZEi,t | 0.031*** (0.009) | 0.024** (0.010) |
LIQUIDITYi,t | − 0.002 (0.004) | − 0.002 (0.004) |
FINi,t | − 0.016 (0.018) | − 0.025 (0.019) |
ROAi,t | − 0.091* (0.049) | − 0.053 (0.049) |
HHIi,t | 0.076 (0.264) | 0.039 (0.319) |
EMi,t | − 0.013 (0.023) | 0.003 (0.023) |
MFCASTi,t | − 0.009 (0.017) | 0.000 (0.015) |
LEVi,t | 0.024 (0.050) | 0.028 (0.048) |
MTBi,t | 0.000 (0.001) | − 0.000 (0.001) |
COECi,t | 0.164 (0.102) | 0.052 (0.095) |
GLOBALi,t | 0.011 (0.019) | 0.017 (0.018) |
\({\mathrm{CEOTEN}}_{\mathrm{i},\mathrm{k},\mathrm{t }}\) | 0.005 (0.005) | 0.019* (0.011) |
\({\mathrm{CEOAGE}}_{\mathrm{k},\mathrm{t}}\) | − 0.087 (0.053) | 0.093 (0.098) |
\({\mathrm{CFOEXP}}_{\mathrm{i},\mathrm{k}}\) | − 0.006 (0.019) | − 0.011 (0.031) |
\({\mathrm{CLOBALCOMPACT}}_{\mathrm{i},\mathrm{t}}\) | 0.011 (0.024) | 0.017 (0.030) |
\({\mathrm{EXTERNALASSURANCE}}_{\mathrm{i},\mathrm{t}}\) | 0.051*** (0.016) | 0.039** (0.017) |
CEO_POWERi,k,t | 0.027 (0.045) | 0.067 (0.050) |
CSOi,t | 0.048*** (0.018) | 0.014 (0.017) |
CEO_DCHAIRi,t | 0.007 (0.014) | 0.012 (0.018) |
BOARD_CSR_COMPi,t | − 0.027* (0.014) | − 0.026* (0.015) |
BOARD_LT_COMPi,t | − 0.008** (0.003) | − 0.007* (0.004) |
BOARD_GENDER_DIVi,t | − 0.001 (0.001) | − 0.001 (0.001) |
BOARD_INDEPENDENTi,t | − 0.000 (0.000) | − 0.000 (0.000) |
Constant | − 0.148 (0.218) | − 0.753** (0.382) |
Observations | 7149 | 7149 |
Adjusted R-squared | 0.493 | 0.615 |
Firm FE | YES | YES |
Year FE | YES | YES |
CEO FE | YES | |
Panel B: Cluster-robust Vuong test | ||
Vuong Z-Statistic: | 12.744 | |
p-Value | 0.000(***) |
4.3 CEO-fixed effects and future cost of equity
Dependent variable: COECi,t+1 | (1) | (2) | (3) |
---|---|---|---|
VARIABLES | |||
CEOFEi,t | − 0.004 (0.004) | − 0.002 (0.002) | − 0.000 (0.002) |
SRi,t | 0.064** (0.028) | 0.047* (0.024) | 0.054** (0.025) |
SPi,t | − 0.015 (0.020) | − 0.006 (0.017) | 0.001 (0.016) |
CEOFEi,t * SRi,t | − 0.020* (0.011) | − 0.010 (0.008) | − 0.011* (0.006) |
CEOFEi,t * SPi,t | 0.016 (0.010) | 0.008 (0.006) | 0.004 (0.005) |
SPi,t * SRi,t | − 0.089* (0.048) | − 0.064 (0.046) | − 0.080* (0.044) |
CEOFEi,t *SRi,t* SPi,t | 0.024 (0.020) | 0.011 (0.014) | 0.015 (0.011) |
BASPREADi,t | − 0.166 (0.833) | − 0.185 (0.841) | − 0.192 (0.837) |
VOLi,t | − 0.000 (0.000) | − 0.000 (0.000) | − 0.000 (0.000) |
SIZEi,t | 0.004 (0.003) | 0.004 (0.003) | 0.004 (0.003) |
BETAi,t | − 0.004 (0.003) | − 0.004 (0.003) | − 0.004 (0.003) |
LEVi,t | 0.008 (0.009) | 0.009 (0.009) | 0.008 (0.009) |
MTBi,t | − 0.000 (0.000) | − 0.000 (0.000) | − 0.000 (0.000) |
LTGROWTHi,t | − 0.001 (0.000) | − 0.001 (0.000) | − 0.000 (0.000) |
DISPi,t | − 0.002 (0.001) | − 0.002 (0.001) | − 0.002 (0.001) |
CONSTANT | 0.025 (0.024) | 0.021 (0.024) | 0.018 (0.024) |
Observations | 1510 | 1510 | 1510 |
Adjusted R-squared | 0.626 | 0.625 | 0.625 |
Firm FE | Yes | Yes | Yes |
Year FE | Yes | Yes | Yes |