Description of variables
| Variable | Description | Source |
|---|---|---|
| Dependent variables | ||
| ESGD | A measure of a firm’s ESG yearly disclosure score net of the mean industry ESG score | Bloomberg |
| GOVD | A measure of a firm’s governance yearly disclosure score net of the mean industry governance score | Bloomberg |
| SOCD | A measure of a firm’s social yearly disclosure score net of the mean industry social score | Bloomberg |
| ENVD | A measure of a firm’s environmental yearly disclosure score net of the mean industry environmental score | Bloomberg |
| Independent variables | ||
| BGD | The ratio of female directors to the total number of directors | CG REPORTS |
| BS | Number of board members | ORBIS |
| CEOD | A dummy variable that takes value 1 if the CEO is also the chairman of the board of directors | CG REPORTS |
| Interaction variables | ||
| BCD | A proxy of board cultural diversity. It is calculated as the percentage of board members who have a cultural background different from the location of the corporate headquarters | CG REPORTS |
| BI | The ratio of independent directors to the total number of directors | CG REPORTS |
| GEQ | A measure of gender equality in a country. It is calculated based on several factors, including economic opportunity, political participation and health and education outcomes | European institute for gender equality |
| ROL | Rule of law captures perceptions of the extent to which agents have confidence in and abide by the rules of society, and in particular the quality of contract enforcement, property rights, the police and the courts | World bank |
| Control variables | ||
| ROA | Return on assets, ratio of net income divided by total assets | ORBIS |
| GEA | Ratio of total financial debt divided by equity | ORBIS |
| SIZE | Natural log of total assets | ORBIS |
| AGE | Firm’s age in years | ORBIS |
| Variable | Description | Source |
|---|---|---|
| ESGD | A measure of a firm’s ESG yearly disclosure score net of the mean industry ESG score | Bloomberg |
| GOVD | A measure of a firm’s governance yearly disclosure score net of the mean industry governance score | Bloomberg |
| SOCD | A measure of a firm’s social yearly disclosure score net of the mean industry social score | Bloomberg |
| ENVD | A measure of a firm’s environmental yearly disclosure score net of the mean industry environmental score | Bloomberg |
| BGD | The ratio of female directors to the total number of directors | CG REPORTS |
| BS | Number of board members | ORBIS |
| CEOD | A dummy variable that takes value 1 if the CEO is also the chairman of the board of directors | CG REPORTS |
| BCD | A proxy of board cultural diversity. It is calculated as the percentage of board members who have a cultural background different from the location of the corporate headquarters | CG REPORTS |
| BI | The ratio of independent directors to the total number of directors | CG REPORTS |
| GEQ | A measure of gender equality in a country. It is calculated based on several factors, including economic opportunity, political participation and health and education outcomes | European institute for gender equality |
| ROL | Rule of law captures perceptions of the extent to which agents have confidence in and abide by the rules of society, and in particular the quality of contract enforcement, property rights, the police and the courts | World bank |
| ROA | Return on assets, ratio of net income divided by total assets | ORBIS |
| GEA | Ratio of total financial debt divided by equity | ORBIS |
| SIZE | Natural log of total assets | ORBIS |
| AGE | Firm’s age in years | ORBIS |
This table shows how the dependent, independent, interaction and control variables are operationalized, and the relative data source
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