286 XXXI International Mineral Processing Congress 2024 Proceedings/Washington, DC/Sep 29–Oct 3
where
ROAf,t =denotes the lagged corporate financial perfor-
mance for company f at time t being ROA
measure (model 1) and Tobin’s Q (model 2)
EEf,t =Energy reduction for company f at time t
SIZEf,t =Natural log of assets of each firm for company f
at time t
LEVARAGEf,t =Level of risk of the company’s operation
for company f at time t
COMMODITYf =Dummy variable of mining commodity
sector the company belongs to 0 otherwise
i.YEARf, =Yearly, dummy, variables for company f
Entity and time fixed effects regression
Entity and time fixed effects were incorporated into the
regression analysis to account for unobserved entity-specific
factors and potential time-specific influences on Tobin’s Q
(Table 9). Firm size remained positively associated with
Tobin’s Q, achieving statistical significance at the 10% level
(p =0.053). While financial leverage and energy efficiency
remained insignificant, total incentives and total new prod-
ucts emerged as significant predictors, with p-values of
0.052 and 0.026 respectively. The model explained 29.9%
of the variance in Tobin’s Q (R-squared =0.299).
Year effects were included but found to be statistically
insignificant, suggesting year may not have had a substantial
impact in this context. Notably, adding these fixed effects
did not significantly alter the associations observed in the
earlier model. Firm size maintained its positive relationship
with market valuation, while most sustainability behaviour
variables remained statistically insignificant.
Entity Fixed Effects Regression with Multi-Way
Clustering of Errors
Analyzing Tobin’s Q with entity fixed effects and multi-
way error clustering confirmed the positive association
with firm size (p =0.016), consistent with previous models
(Table 10). Financial leverage remained statistically insig-
nificant (p =0.626). Energy efficiency’s negative association
persisted and achieved statistical significance (p =0.034).
Most sustainability behaviors remained insignificant, except
for total new products, which retained a negative and sig-
nificant association (p =0.010). These findings suggest that
introducing new products might negatively impact finan-
cial performance as measured by Tobin’s Q.
Table 9. Entity and time fixed effects regression results
tobin_q_ratio Coef. St.Err. t-value p-value [95% Conf Interval] Sig
fncl_lvrg –0.106 0.158 –0.67 0.507 –0.428 0.217
size 0.288 0.143 2.02 0.053 –0.004 0.581 *
energy_efficiency –0.182 0.126 –1.44 0.16 –0.44 0.076
total_adoptofstand~s –0.105 0.25 –0.42 0.679 –0.616 0.407
total_associations –0.049 0.04 –1.21 0.235 –0.131 0.034
total_communications 0.023 0.047 0.5 0.622 –0.073 0.12
total_donationfund~s 0.024 0.037 0.65 0.521 –0.052 0.1
total_assetmodific~s –0.03 0.026 –1.14 0.265 –0.083 0.024
total_incentives 0.139 0.068 2.03 0.052 –0.001 0.278 *
total_modification~s 0.011 0.025 0.46 0.647 –0.039 0.062
total_newproducts –0.137 0.059 –2.34 0.026 –0.257 –0.017 **
total_orgstructuring –0.02 0.089 –0.22 0.825 –0.201 0.161
total_rdinvestments 0.087 0.072 1.21 0.237 –0.06 0.234
total_training 0.021 0.03 0.69 0.497 –0.041 0.083
total_volunteerism –0.185 0.109 –1.69 0.101 –0.408 0.038
total_assess_measu~t –0.027 0.03 –0.91 0.371 –0.088 0.034
2020b 0 .....
2021 0.35 0.247 1.42 0.167 –0.155 0.854
Constant –1.377 1.311 –1.05 0.303 –4.059 1.306
Mean dependent var 1.207 SD dependent var 0.429
R-squared 0.299 Number of obs 97
F-test 5.987 Prob F 0.000
Akaike crit. (AIC) –4.393 Bayesian crit. (BIC) 39.377
***p.01, **p.05, *p.1
where
ROAf,t =denotes the lagged corporate financial perfor-
mance for company f at time t being ROA
measure (model 1) and Tobin’s Q (model 2)
EEf,t =Energy reduction for company f at time t
SIZEf,t =Natural log of assets of each firm for company f
at time t
LEVARAGEf,t =Level of risk of the company’s operation
for company f at time t
COMMODITYf =Dummy variable of mining commodity
sector the company belongs to 0 otherwise
i.YEARf, =Yearly, dummy, variables for company f
Entity and time fixed effects regression
Entity and time fixed effects were incorporated into the
regression analysis to account for unobserved entity-specific
factors and potential time-specific influences on Tobin’s Q
(Table 9). Firm size remained positively associated with
Tobin’s Q, achieving statistical significance at the 10% level
(p =0.053). While financial leverage and energy efficiency
remained insignificant, total incentives and total new prod-
ucts emerged as significant predictors, with p-values of
0.052 and 0.026 respectively. The model explained 29.9%
of the variance in Tobin’s Q (R-squared =0.299).
Year effects were included but found to be statistically
insignificant, suggesting year may not have had a substantial
impact in this context. Notably, adding these fixed effects
did not significantly alter the associations observed in the
earlier model. Firm size maintained its positive relationship
with market valuation, while most sustainability behaviour
variables remained statistically insignificant.
Entity Fixed Effects Regression with Multi-Way
Clustering of Errors
Analyzing Tobin’s Q with entity fixed effects and multi-
way error clustering confirmed the positive association
with firm size (p =0.016), consistent with previous models
(Table 10). Financial leverage remained statistically insig-
nificant (p =0.626). Energy efficiency’s negative association
persisted and achieved statistical significance (p =0.034).
Most sustainability behaviors remained insignificant, except
for total new products, which retained a negative and sig-
nificant association (p =0.010). These findings suggest that
introducing new products might negatively impact finan-
cial performance as measured by Tobin’s Q.
Table 9. Entity and time fixed effects regression results
tobin_q_ratio Coef. St.Err. t-value p-value [95% Conf Interval] Sig
fncl_lvrg –0.106 0.158 –0.67 0.507 –0.428 0.217
size 0.288 0.143 2.02 0.053 –0.004 0.581 *
energy_efficiency –0.182 0.126 –1.44 0.16 –0.44 0.076
total_adoptofstand~s –0.105 0.25 –0.42 0.679 –0.616 0.407
total_associations –0.049 0.04 –1.21 0.235 –0.131 0.034
total_communications 0.023 0.047 0.5 0.622 –0.073 0.12
total_donationfund~s 0.024 0.037 0.65 0.521 –0.052 0.1
total_assetmodific~s –0.03 0.026 –1.14 0.265 –0.083 0.024
total_incentives 0.139 0.068 2.03 0.052 –0.001 0.278 *
total_modification~s 0.011 0.025 0.46 0.647 –0.039 0.062
total_newproducts –0.137 0.059 –2.34 0.026 –0.257 –0.017 **
total_orgstructuring –0.02 0.089 –0.22 0.825 –0.201 0.161
total_rdinvestments 0.087 0.072 1.21 0.237 –0.06 0.234
total_training 0.021 0.03 0.69 0.497 –0.041 0.083
total_volunteerism –0.185 0.109 –1.69 0.101 –0.408 0.038
total_assess_measu~t –0.027 0.03 –0.91 0.371 –0.088 0.034
2020b 0 .....
2021 0.35 0.247 1.42 0.167 –0.155 0.854
Constant –1.377 1.311 –1.05 0.303 –4.059 1.306
Mean dependent var 1.207 SD dependent var 0.429
R-squared 0.299 Number of obs 97
F-test 5.987 Prob F 0.000
Akaike crit. (AIC) –4.393 Bayesian crit. (BIC) 39.377
***p.01, **p.05, *p.1