Table 4 Instrumental variable estimation results.

From: ESG performance, digital transformation, and green innovation

 

(1)

(2)

VARIABLES

GI

ESG

IV

0.0177***

 
 

(0.00278)

 

GI

 

3.703***

  

(0.952)

Constant

−3.373***

58.14***

 

(0.310)

(3.594)

Controls

Yes

Yes

Company FE

Yes

Yes

Year FE

Yes

Yes

Observations

6512

6512

R-squared

0.213

−0.142

First-stage F-statistics

40.339

 
  1. t-statistic provided in parentheses. The negative R2 in the second-stage 2SLS regression is a known statistical artifact, as 2SLS does not minimize the residual sum of squares. This does not indicate a model flaw, but rather reflects that the instrumented variable explains only limited variation in the dependent variable. It does not affect the validity or significance of the estimated coefficients.
  2. ***,**,*Indicate that regression coefficient is significant at the 1%, 5%, and 10% levels, respectively.
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