“…Finally, we follow prior studies (Abid et al, 2021; Gull et al, 2018; Gull, Atif, et al, 2021; Nadarajah et al, 2021; Nekhili et al, 2020; Shahab et al, 2021; Wintoki et al, 2012) and use the GMM regression to control for unobserved heterogeneity, simultaneity, and the dynamic relationship between environmental performance and firm performance. We also report the Arellano‐Bond test for AR(1), the Arellano‐Bond test for AR(2) in first differences, and the Hansen test for over‐identification to ensure the accuracy of the GMM regressions.…”