Table A1 Definitions of the variables...

Table A1

Definitions of the variables

Variable	Definition
StdROA	The standard deviation of return on assets over a three-year rolling period
StdTobinq	The standard deviation of Tobin’s Q over the three-year rolling period
ESGs	The composite environmental, social and governance (ESG) score ranges between 0 and 100
ENPs	The environmental score of the firms ranges between 0 and 100
SOPs	The social score of the firms ranges between 0 and 100
GOPs	The governance score of the firms ranges between 0 and 100
Resource	ENPs indicator assessing firm’s resource consumption reduction score between 0 and 100
Emissions	ENPs indicator assessing firm’s emission reduction score between 0 and 100
Eco-innovation	ENPs indicator assessing a firm’s eco-innovation ability score between 0 and 100
Workforce	SOPs indicator assessing firm’s commitment to workforce improvement score between 0 and 100
Humanrights	SOPs indicator assessing a firm’s commitment to human rights score between 0 and 100
Community	SOPs indicator assessing a firm’s commitment to community development score between 0 and 100
Productresp	SOPs indicator assessing a firm’s commitment to product responsibility score between 0 and 100
Management	GOPs indicator assessing firm’s management structure score between 0 and 100
Shareholders	GOPs indicator assessing a firm’s commitment to shareholder rights scores between 0 and 100
CSRstrategy	GOPs indicator assessing a firm’s integration of CSR into its operations scores between 0 and 100
ESGs-ind	Industry-adjusted ESG score is calculated by deducting the industry mean of ESG score from the firm’s ESG score in a year
ENPs-ind	The industry-adjusted environmental score is calculated by deducting the industry mean of environmental score from the firm’s environmental score in a year
SOPs-ind	The industry-adjusted social score is calculated by deducting the industry mean of social score from the firm’s social score in a year
GOPs-ind	Industry-adjusted governance score is calculated by deducting the industry mean of governance score from the firm’s governance score in a year
CEOpow	CEO power is proxied by CEO duality; it takes 1 if CEO is the board chair concurrently, and 0 otherwise
Bsize	Board size is denoted by the number of directors on the board
Fsize	Firm size proxied by the natural logarithm of the firm’s assets
ROA	Return on assets proxied by earnings before tax scaled by total assets
Leverage	Leverage indicates the ratio of total debt to total assets
Currentr	Current ratio indicates the ratio of total current assets to total current liabilities
RDintensity	Research and development intensity is proxied by the ratio of research and development expenditures scaled by net sales
FFP	Free float percentage of shares

Variable	Definition
StdROA	The standard deviation of return on assets over a three-year rolling period
StdTobinq	The standard deviation of Tobin’s Q over the three-year rolling period
ESGs	The composite environmental, social and governance (ESG) score ranges between 0 and 100
ENPs	The environmental score of the firms ranges between 0 and 100
SOPs	The social score of the firms ranges between 0 and 100
GOPs	The governance score of the firms ranges between 0 and 100
Resource	ENPs indicator assessing firm’s resource consumption reduction score between 0 and 100
Emissions	ENPs indicator assessing firm’s emission reduction score between 0 and 100
Eco-innovation	ENPs indicator assessing a firm’s eco-innovation ability score between 0 and 100
Workforce	SOPs indicator assessing firm’s commitment to workforce improvement score between 0 and 100
Humanrights	SOPs indicator assessing a firm’s commitment to human rights score between 0 and 100
Community	SOPs indicator assessing a firm’s commitment to community development score between 0 and 100
Productresp	SOPs indicator assessing a firm’s commitment to product responsibility score between 0 and 100
Management	GOPs indicator assessing firm’s management structure score between 0 and 100
Shareholders	GOPs indicator assessing a firm’s commitment to shareholder rights scores between 0 and 100
CSRstrategy	GOPs indicator assessing a firm’s integration of CSR into its operations scores between 0 and 100
ESGs-ind	Industry-adjusted ESG score is calculated by deducting the industry mean of ESG score from the firm’s ESG score in a year
ENPs-ind	The industry-adjusted environmental score is calculated by deducting the industry mean of environmental score from the firm’s environmental score in a year
SOPs-ind	The industry-adjusted social score is calculated by deducting the industry mean of social score from the firm’s social score in a year
GOPs-ind	Industry-adjusted governance score is calculated by deducting the industry mean of governance score from the firm’s governance score in a year
CEOpow	CEO power is proxied by CEO duality; it takes 1 if CEO is the board chair concurrently, and 0 otherwise
Bsize	Board size is denoted by the number of directors on the board
Fsize	Firm size proxied by the natural logarithm of the firm’s assets
ROA	Return on assets proxied by earnings before tax scaled by total assets
Leverage	Leverage indicates the ratio of total debt to total assets
Currentr	Current ratio indicates the ratio of total current assets to total current liabilities
RDintensity	Research and development intensity is proxied by the ratio of research and development expenditures scaled by net sales
FFP	Free float percentage of shares

Source(s): Authors’ own work

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