Variable definitions
| Variables | Definitions |
|---|---|
| Dependent variables | |
| Sales growth | (Sales t − Sales t − 1) / Sales t − 1 |
| Profitability | Operating profit / total assets |
| CSR initiatives | |
| UNGC UNITED NATIONS GLOBAL COMPACT | 1 if the firm has disclosed the presence of the certification in the social-environment-sustainability-integrated-non_financial_diclosure report; 0 otherwise |
| OHSAS 18001 | 1 if the firm has disclosed the presence of the certification in the social-environment-sustainability-integrated-non_financial_diclosure report; 0 otherwise |
| KYOTO | 1 if the firm has disclosed the commitment to Kyoto protocol or Paris agreement in the social-environment-sustainability-integrated-non_financial_diclosure report; 0 otherwise |
| Combinations of certification | |
| KYOTO and UNGC | 1 if the firm has disclosed the presence of BOTH the certifications in the social-environment-sustainability-integrated-non_financial_diclosure report; 0 otherwise |
| OHSAS 18001 and UNGC | 1 if the firm has disclosed the presence of BOTH the certifications in the social-environment-sustainability-integrated-non_financial_diclosure report; 0 otherwise |
| KYOTO and OHSAS 18001 | 1 if the firm has disclosed the presence of BOTH the certifications in the social-environment-sustainability-integrated-non_financial_diclosure report; 0 otherwise |
| KYOTO and OHSAS 18001 and UNGC | 1 if the firm has disclosed the presence of the THREE certifications in the social-environment-sustainability-integrated-non_financial_diclosure report; 0 otherwise |
| Quality of Government | |
| The European Quality of Government Index (EQI) | Survey data on corruption and governance at regional level in the EU, reporting perception and experience of public sector corruption, and the extent to which citizens believe various public sector services are allocated impartially and are of good quality. Survey questions concern quality, impartiality and corruption and ask about respondents’ experience and perceptions. The main public services of interest are those expected to maximize regional variation, i.e. education, health services and law enforcement |
| Control variables for firm features | |
| Firm size | Natural logarithm of total assets |
| Leverage | Equity / total assets |
| Mtb | Market value of equity / book value of equity |
| Mkt_share | Company’s sales / industry sales |
| Env_Dyn | Regressing industry (three-digit SIC) sales against time and dividing the standard errors of the regression slope coefficients by the mean sales over the past three years |
| Variables | Definitions |
|---|---|
| Sales growth | (Sales |
| Profitability | Operating profit / total assets |
| UNGC | 1 if the firm has disclosed the presence of the certification in the social-environment-sustainability-integrated-non_financial_diclosure report; 0 otherwise |
| OHSAS 18001 | 1 if the firm has disclosed the presence of the certification in the social-environment-sustainability-integrated-non_financial_diclosure report; 0 otherwise |
| KYOTO | 1 if the firm has disclosed the commitment to Kyoto protocol or Paris agreement in the social-environment-sustainability-integrated-non_financial_diclosure report; 0 otherwise |
| KYOTO and UNGC | 1 if the firm has disclosed the presence of BOTH the certifications in the social-environment-sustainability-integrated-non_financial_diclosure report; 0 otherwise |
| OHSAS 18001 and UNGC | 1 if the firm has disclosed the presence of BOTH the certifications in the social-environment-sustainability-integrated-non_financial_diclosure report; 0 otherwise |
| KYOTO and OHSAS 18001 | 1 if the firm has disclosed the presence of BOTH the certifications in the social-environment-sustainability-integrated-non_financial_diclosure report; 0 otherwise |
| KYOTO and OHSAS 18001 and UNGC | 1 if the firm has disclosed the presence of the THREE certifications in the social-environment-sustainability-integrated-non_financial_diclosure report; 0 otherwise |
| The European Quality of Government Index (EQI) | Survey data on corruption and governance at regional level in the EU, reporting perception and experience of public sector corruption, and the extent to which citizens believe various public sector services are allocated impartially and are of good quality. Survey questions concern quality, impartiality and corruption and ask about respondents’ experience and perceptions. The main public services of interest are those expected to maximize regional variation, i.e. education, health services and law enforcement |
| Firm size | Natural logarithm of total assets |
| Leverage | Equity / total assets |
| Mtb | Market value of equity / book value of equity |
| Mkt_share | Company’s sales / industry sales |
| Env_Dyn | Regressing industry (three-digit SIC) sales against time and dividing the standard errors of the regression slope coefficients by the mean sales over the past three years |
Source(s): Authors’ own work
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