Table 1. Explanation of variables... | Emerald Publishing

Table 1.

Explanation of variables

Variable	Description measure	References
Dependent variable
ESG variable (source: Refinitiv)
ESG performance (ESG_perf)	Comprehensive scoring of the environment, social and governance performance by the weighted average of the ESG scores and ESG controversies (captured from global media sources) (see Table 1)
Independent variables
Board size (B_size)	Total number of directors on the bank’s board at the end of the fiscal year	Laksmana (2008); Said et al. (2009); Michelon and Parbonetti (2012); Amran et al. (2014); Arayssi et al. (2020); Jizi et al. (2014, 2017); Wasiuzzaman and Wan Mohammad (2020); Imperiale et al. (2023); Mehmood et al. (2023a, b)
Board gender diversity (B_gend)	Percentage of female directors on the board (number of female directors divided by total number of board members)	Barako and Brown (2008); Adams and Ferreira (2009); Amran et al. (2014); Galbreath (2016); Rao and Tilt (2016a, b); Cucari et al. (2018); Husted and de Sousa-Filho (2019); Arayssi et al. (2020); Cordeiro et al. (2020), Imperiale et al. (2023); Gerwing et al. (2022); Mehmood et al. (2023a, b)
Board mass of gender diversity (B_mgend)	Dummy variable that takes value 1 if the board has at least three women, 0 otherwise	Post et al. (2011), Fernandez-Feijoo et al. (2012, 2014), Liu (2018), Ben-Amar et al. (2017)
Board independence (B_ind)	Percentage of independent or outside directors on the board	Chau and Gray (2010), Michelon and Parbonetti (2012); Jizi et al. (2014); Rao and Tilt (2016a, b); Husted and de Sousa-Filho (2019); Arayssi et al. (2020); Wasiuzzaman and Wan Mohammad (2020); Imperiale et al. (2023); Mehmood et al. (2023a), (2023b); Nicolò et al. (2023)
CSR/sustainability committee (CSR_com)	Dummy variable equal to 1 if the bank has a CSR committee or a sustainability committee, 0 otherwise	Rao and Tilt (2016a, b); Liao et al. (2015); Hussain et al. (2018); Husted and de Sousa-Filho (2019); Arayssi et al. (2020); Gerwing et al. (2022); Wasiuzzaman and Wan Mohammad (2020); Imperiale et al. (2023); Mehmood et al. (2023a, b)
CEO duality (CEO_dual)	Dummy variable that equals to 1 if the CEO is chairman of the board and zero otherwise	Michelon and Parbonetti (2012); Jizi et al. (2014); Loukil et al., 2019; Zaid et al., 2020; Arayssi et al. (2020); Imperiale et al. (2023); Mehmood et al. (2023a, b); Nicolò et al. (2023)
Size (SIZE)*	Natural logarithm of total assets of the firm (euro)	Setó-Pamies (2015), Helfaya and Moussa (2017),Arayssi et al. (2020); Wasiuzzaman and Wan Mohammad (2020); Mehmood et al. (2023a, b); Nicolò et al. (2023)
Return on equity (ROE)	Net income divided by the value of total shareholders’ equity	Setó-Pamies (2015), Helfaya and Moussa (2017),Arayssi et al. (2020),Mehmood et al. (2023a, b)
Leverage (LEV)	Total debt divided by total assets	Helfaya and Moussa (2017); Wasiuzzaman and Wan Mohammad (2020); Mehmood et al. (2023a, b); Nicolò et al. (2023)
GDP per capita (GDP)*	Gross domestic product (GDP) per capita	Fernandez-Feijoo et al. (2014); Hu and Scholtens (2014)

Variable	Description measure	References
Dependent variable
ESG variable (source: Refinitiv)
ESG performance (ESG_perf)	Comprehensive scoring of the environment, social and governance performance by the weighted average of the ESG scores and ESG controversies (captured from global media sources) (see Table 1)
Independent variables
Board size (B_size)	Total number of directors on the bank’s board at the end of the fiscal year	Laksmana (2008); Said et al. (2009); Michelon and Parbonetti (2012); Amran et al. (2014); Arayssi et al. (2020); Jizi et al. (2014, 2017); Wasiuzzaman and Wan Mohammad (2020); Imperiale et al. (2023); Mehmood et al. (2023a, b)
Board gender diversity (B_gend)	Percentage of female directors on the board (number of female directors divided by total number of board members)	Barako and Brown (2008); Adams and Ferreira (2009); Amran et al. (2014); Galbreath (2016); Rao and Tilt (2016a, b); Cucari et al. (2018); Husted and de Sousa-Filho (2019); Arayssi et al. (2020); Cordeiro et al. (2020), Imperiale et al. (2023); Gerwing et al. (2022); Mehmood et al. (2023a, b)
Board mass of gender diversity (B_mgend)	Dummy variable that takes value 1 if the board has at least three women, 0 otherwise	Post et al. (2011), Fernandez-Feijoo et al. (2012, 2014), Liu (2018), Ben-Amar et al. (2017)
Board independence (B_ind)	Percentage of independent or outside directors on the board	Chau and Gray (2010), Michelon and Parbonetti (2012); Jizi et al. (2014); Rao and Tilt (2016a, b); Husted and de Sousa-Filho (2019); Arayssi et al. (2020); Wasiuzzaman and Wan Mohammad (2020); Imperiale et al. (2023); Mehmood et al. (2023a), (2023b); Nicolò et al. (2023)
CSR/sustainability committee (CSR_com)	Dummy variable equal to 1 if the bank has a CSR committee or a sustainability committee, 0 otherwise	Rao and Tilt (2016a, b); Liao et al. (2015); Hussain et al. (2018); Husted and de Sousa-Filho (2019); Arayssi et al. (2020); Gerwing et al. (2022); Wasiuzzaman and Wan Mohammad (2020); Imperiale et al. (2023); Mehmood et al. (2023a, b)
CEO duality (CEO_dual)	Dummy variable that equals to 1 if the CEO is chairman of the board and zero otherwise	Michelon and Parbonetti (2012); Jizi et al. (2014); Loukil et al., 2019; Zaid et al., 2020; Arayssi et al. (2020); Imperiale et al. (2023); Mehmood et al. (2023a, b); Nicolò et al. (2023)
Size (SIZE)*	Natural logarithm of total assets of the firm (euro)	Setó-Pamies (2015), Helfaya and Moussa (2017)Arayssi et al. (2020); Wasiuzzaman and Wan Mohammad (2020); Mehmood et al. (2023a, b); Nicolò et al. (2023)
Return on equity (ROE)	Net income divided by the value of total shareholders’ equity	Setó-Pamies (2015), Helfaya and Moussa (2017)Arayssi et al. (2020)Mehmood et al. (2023a, b)
Leverage (LEV)	Total debt divided by total assets	Helfaya and Moussa (2017); Wasiuzzaman and Wan Mohammad (2020); Mehmood et al. (2023a, b); Nicolò et al. (2023)
GDP per capita (GDP)*	Gross domestic product (GDP) per capita	Fernandez-Feijoo et al. (2014); Hu and Scholtens (2014)

Note(s):

*Natural logarithmic transformations of the numerical (nonindex) variables

Source(s): Authors’ own creation