Description of the variables analyzed
| Variables | Description | Source |
|---|---|---|
| MKTVL | Market Value: measured by Tobin's Q | Refinitiv Eikon |
| ESG | ESG Performance: This metric ranges from 0 (lowest ESG performance) to 100 (highest ESG performance). Thomson Reuters evaluates 178 indicators segmented into 3 pillars: environmental, social and governance. Companies are ranked by percentages and compared with the score of the industry to which they belong | Refinitiv Eikon |
| STAKENG | Stakeholder Engagement: This metric ranges from 0 (lowest stakeholder engagement) to 1 (highest stakeholder engagement). The variable is included as a dummy variable because it contributes to the interpretation of the coefficient | Refinitiv Eikon |
| ROA | Return on Assets: Net Income/Total Assets | Refinitiv Eikon |
| LEVERAGE | Financial leverage: Total liabilities/Total assets | Refinitiv Eikon |
| SIZE | Firm Size: Natural log of total assets | Refinitiv Eikon |
| SECTOR | Sector of activity: If it is energy, materials and utilities, it receives 1, otherwise 0 | Refinitiv Eikon |
| ECOFREE | Country economic freedom: This variable measures the impact of freedom and open markets for each country, ranging from 67.2 (greater economic freedom) to 49.5 (less economic freedom) | Heritage Foundation |
| Variables | Description | Source |
|---|---|---|
| MKTVL | Market Value: measured by Tobin's Q | Refinitiv Eikon |
| ESG | ESG Performance: This metric ranges from 0 (lowest ESG performance) to 100 (highest ESG performance). Thomson Reuters evaluates 178 indicators segmented into 3 pillars: environmental, social and governance. Companies are ranked by percentages and compared with the score of the industry to which they belong | Refinitiv Eikon |
| STAKENG | Stakeholder Engagement: This metric ranges from 0 (lowest stakeholder engagement) to 1 (highest stakeholder engagement). The variable is included as a dummy variable because it contributes to the interpretation of the coefficient | Refinitiv Eikon |
| ROA | Return on Assets: Net Income/Total Assets | Refinitiv Eikon |
| LEVERAGE | Financial leverage: Total liabilities/Total assets | Refinitiv Eikon |
| SIZE | Firm Size: Natural log of total assets | Refinitiv Eikon |
| SECTOR | Sector of activity: If it is energy, materials and utilities, it receives 1, otherwise 0 | Refinitiv Eikon |
| ECOFREE | Country economic freedom: This variable measures the impact of freedom and open markets for each country, ranging from 67.2 (greater economic freedom) to 49.5 (less economic freedom) | Heritage Foundation |
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