Fig. 4: The result of placebo test.
From: Environmental vertical management reform and firms’ ESG performance: evidence from China
The X-axis represents the t-values of the regression estimates from random sampling results. The Y-axis represents the frequency or density of the t-values. It shows how often certain t-values occur in the random sampling results. The dots represent the individual data points or specific t-values obtained from the regression estimates in the placebo test. The curve usually represents a distribution or fitted line that shows the overall pattern or trend of these t-values. The long vertical dashed line represents t-values of the regression estimates from the baseline regression. If the t-values from the majority of the random sampling results are concentrated around 0 and are smaller than the t-value from the baseline regression (2.95), it indicates that the placebo test has passed.
