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- Estimations are carried out by using the two-step SYS GMM estimator (Arellano and Bover, 1995; Blundell and Bond, 1998). For the description of the variables, see Table 1. The dependent variable is INVESTMENT. Superscripts ***, ** and * denote statistical significance at the 1, 5 and 10 percent level, respectively. Robust standard errors are given in italics. Tests for the first and second order autocorrelation (AR(1) and AR(2)), and the Hansen test of overidentifying restrictions are reported.
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- Min Max Obs Main variables INVESTMENT Sum of depreciation in year t and the change in tangible fixed assets from year t −1 to year t diveded by replacement value of the firm’s capital stock. 0.575 1.237 -0.847 14.283 146,537 CASHFLOW Cash flow scaled by its beginning of period capital. 1.054 2.680 -23.743 30.574 146,537 GREENFIRM Dummy = 1 if the firm has at least one green patent (CPC code) during the period 2000 -2013. 0.007 0.085 0 1 146,537 GREENPAT Number of firm green patent identified by CPC code during the period 2000 -2013.
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- See section 2 for a detailed description. 0.034 0.489 0 19.102 146,537 GREENNESS2 Number of firm green patent identified by IPC code over total patent during the period 2000 -2013. See section 2 for a detailed description. 0.004 0.046 0 1 146,537 Table 1 -
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- See section 5.1 for a detailed description. 4.794 4.056 0 12.779 146,537 GREENFIRM2 Dummy = 1 if the firm has at least one green patent (IPC code) during the period 2000 -2013. 0.016 0.124 0 1 146,537 GREENPAT2 Number of firm green patent identified by IPC code during the period 2000 -2013.
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Zhang, D. and Jin, Y., 2021. R&D and environmentally induced innovation: Does financial constraint play a facilitating role? International Review of Financial Analysis, 78, article No. 101918. APPENDIX A A.1 Coarse matching We control for the observable determinants of financial constraint on firms by checking the main variables identified in the literature, such as age, leverage, average cost of debt, and working capital.