Table 2

Description of the variables analyzed

VariablesDescriptionSource
MKTVLMarket Value: measured by Tobin's QRefinitiv Eikon
ESGESG 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 belongRefinitiv Eikon
STAKENGStakeholder 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 coefficientRefinitiv Eikon
ROAReturn on Assets: Net Income/Total AssetsRefinitiv Eikon
LEVERAGEFinancial leverage: Total liabilities/Total assetsRefinitiv Eikon
SIZEFirm Size: Natural log of total assetsRefinitiv Eikon
SECTORSector of activity: If it is energy, materials and utilities, it receives 1, otherwise 0Refinitiv Eikon
ECOFREECountry 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
Source(s): Authors’ own work

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