Change scores and ceiling effects

[Ole Tomas]

For my thesis, through panel data, I want to research the effects of tax avoidance in year t (independent variable) which is proxied by the effective tax rate, on the change in ESG (Environment, Social, Governance) scores (0-100) from year t to year t+1. So this dependent variable is a change in score value. However, I am contemplating whether to include the baseline of ESG scores as a covariate. Because, if a firm has a score of 98 on ESG, by definition it will be hard to increase this score since the maximum is 100. Vice versa, for companies having a low score of let say 2, they can more easily improve this. Do these ceiling and floor effects interfere with the interpretation of the results? Is it necessary to include the baseline of the score, or is this unnecessary?
Or is including a dummy variable for bottom and top 10th percentile of ESG scores in the regression as control variable also feasible?

[Clyde Schechter]

Ole Tomas posted this question at https://www.statalist.org/forums/for...-same-variable on May 14 and received two responses there. If you plan to respond to this question, I recommend reading that thread first, and post your response as a continuation of that thread, rather than here.