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Panel B: Pearson correlation matrix

Environmental
governance TEC1 TEC2 LEV SIZE ROA ROE CASH
Environmental

governance 1.000

TEC1 -0.015 1.000
TEC2 0.008 0.576 1.000
LEV 0.034 -0.027 -0.018 1.000
SIZE -0.004 0.207 0.050 0.047 1.000
ROA 0.017 0.087 0.046 -0.446 0.211 1.000

ROE 0.036 0.060 0.034 -0.028 0.196 0.645 1.000
CASH -0.090 -0.013 -0.022 -0.206 -0.104 0.197 0.125 1.000
The table presents descriptive statistics for key variables used in our baseline
analysis. All continuous variables are winsorized at the 1% and 99% levels. Variable
definitions and data sources are included in Appendix A. Panel A reports the observation

counts and summary statistics for the entire sample. Panel B shows the Pearson
correlation coefficients for each pair of variables.
4.2. Baseline results
To examine the relationship between the efficiency of provincial-level public
administration and corporate technology investment level by estimating the following
regression model:
ℎ = β + β + β + γ + ε (1)
0 2
1

Here, ℎ represents the corporate technology investment index

estimated in years t, TEC and TEC . stands Environmental
1 2

governance in year t. X is a vector of control variables, as presented in section 3.3,
calculated in year t. The year-fixed effects (denoted as γ ) are included in our baseline

model. Importantly, the coefficient β reflects the impact of public administration
1

efficiency on corporate technology investment. We adopted the Tobit model to conduct
the regression analysis because TEC1 and TEC2 have many zero values, and we report
the estimated regressions controlling for year-fixed effects in Table 2.
The coefficients of Environmental governance in Columns (1) to (4) are negative

and statistically significant at a 1% level. For instance, the coefficients in columns (1)
and (2) on TEC1 and TEC2 are -5.120 and -5.472, respectively. The negative coefficients
indicate that when citizens are aware of the environment, corporations will be
encouraged to allocate more STD funds for science and technology transformation. The
evidence agrees with our Hypotheses. The coefficients of control
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