Do sustainable investments propel the national economy? Evidence from manufacturing and service sectors in India

Figures & data

Table

Variables	Sub variables	Definitions
Social sustainability	Social and community	The investments in the society and community uplift society and give something back.
	Staff welfare and training	They are training staff about being responsible for society.
	Donations	They are giving charity to the non-profit organization or the others in need.
Economic sustainability	Employee’s utilization ratio	They are using the employees in an optimum manner to enhance their productivity and cost-saving.
	Research and development	Investing in the R&D to improve the sustainability measures in the organization
Environment sustainability	Environment and pollution investment	Investing in the control policy to make the company more sustainable sound and protect the environment.
Financial performance	Return of equity (ROE)	The measure of printability is based on equity, more precisely on shareholder’s equity. (ROE = profit after tax/market capitalization*100)
	Return of Assets (ROA)	It shows the percentage of how profitable is the assets in generating revenue.
	Earnings per share (EPS)	It is a measure of profitability calculated by dividing the profit by outstanding share.

Table

Nature of Business	Frequency	N	Percent
SERVICES	307	25	33.33
MANUFACTURING	517	50	66.7
Total	824	75	100.0

(Sources: Compiled by Researcher)

Table

Variables	Levin, Lin & Chu t	Im, Pesaran and Shin W-stat	ADF—Fisher Chi-square	PP—Fisher Chi-square	Level
Donation	0.000	0.000	0.000	0.000	0
Employee’s utilization ratio	0.0000	0.0230	0.7606	0.9992	0
Social and community expenses	0.6091	0.8716	0.0399	0.0033	1
Staff & welfare training	0.0000	0.0000	0.0000	0.0000	1
Research & development	0.0000	0.0000	0.0000	0.0000	0
Environment and pollution expenses	0.6190	0.0068	0.3064	0.0000	1
ROE	0.0000	0.0001	0.0308	0.0000	0
ROA	0.0000	0.0000	0.0000	0.9763	0
EPS	0.0024	0.1254	0.0660	0.0120	1

Table

Variables	VIF (<10)
Social and community expenses	1.376030
Staff and welfare training expenses	3.252820
Research and development expenses	7.057925
Environment and pollution expenses	2.982240
Employee’s utilization ratio	3.983440
Donations	4.588956

Table

Variables	Breusch-Pagan LM (Statistic)	Probability.
ROE	7228.614	0.000
ROA	5722.904	0.000
EPS	6421.953	0.000

Table

Variables	Durbin-Watson stat
ROE	2.238886
ROA	2.412783
EPS	2.777302

Table

	Manufacturing Sector			Service Sector
Variables	ROE (FE)	ROA (FE)	EPS (FE)	ROE (RE)	ROA (RE)	EPS (RE)
S & C	0.000142*	0.028125*	−0.001024	0.002434*	3.53E-05	−0.001399
S & W	0.000699*	−3.13E-05	−0.004504	0.000290*	0.000567*	−6.78E-05
R & D	−1.52E-05	−0.016593	−0.000853	4.08E-05	−0.000689*	0.000647
E & P	0.001007	0.039423	−0.040000	−0.001767	−0.004963*	−0.021050*
EU	0.021664	−5.012083	0.273928	0.007334	0.004425	−0.005953
Do	0.001539	−0.286070	−0.034049	−0.000347	−0.004304*	0.011793
C	4.473825	215.8369	113.8520	3.591442	12.99204	43.16383
R squared	0.1340	0.018	0.0090	0.4096	0.5563	0.038
Durban Watson	1.7760	1.1354	0.1316	1.609	0.3373	0.6427
Probability	0.0000	0.1544	0.5887	0.000	0.0000	0.0672