Variables description and measurement
| Variables | Definition | Measure |
|---|---|---|
| Dependent variables | ||
| TOBINQ | Tobin Q | Market value of the firm divided by the total value of the firm’s assets |
| FF_ROA | Return on assets | Net income/average total assets |
| Independent variables | ||
| H_RIGHTP | Human right score | Weighted average of firms scores, normalized at percentage |
| ESG_PERF | ESG score | This is a measure of firms weighted average score across Three pillars of ESG (Environmental, Social and Governance), normalized at percentages from 0 to 100 |
| Controls | ||
| S_Growth | Sales growth | Relative scaling of firms’ level sales |
| F_LVERAG | Leverage ratio | Total debt to total assets |
| SIZE | Firm size | Natural log of total assets |
| AGE | Firm age | Firm age is calculated from the date of listing. This is converted into a dummy variable which takes the value of 1 for firms above the mean firm age and 0 otherwise |
| B_SIZ | Board size | Number of people on firms’ board |
| ESG_AUDIT | ESG audit | Dummy variable for firms with ESG audit and those that have none |
| MGMT_PERF | Management performance | Weighted average of management performance, normalized at percentage |
| ESG_STRAT | ESG performance | Weighted average of ESG strategy score, normalized at percentage |
| ESG_TEAM | ESG team | Dummy variable for firms with ESG team and those that have none |
| Industry FE | Industry fixed effect | |
| Year FE | Year fixed effect | |
| Variables | Definition | Measure |
|---|---|---|
| Tobin Q | Market value of the firm divided by the total value of the firm’s assets | |
| FF_ROA | Return on assets | Net income/average total assets |
| H_RIGHTP | Human right score | Weighted average of firms scores, normalized at percentage |
| ESG_PERF | This is a measure of firms weighted average score across Three pillars of | |
| S_Growth | Sales growth | Relative scaling of firms’ level sales |
| F_LVERAG | Leverage ratio | Total debt to total assets |
| Firm size | Natural log of total assets | |
| Firm age | Firm age is calculated from the date of listing. This is converted into a dummy variable which takes the value of 1 for firms above the mean firm age and 0 otherwise | |
| B_SIZ | Board size | Number of people on firms’ board |
| ESG_AUDIT | Dummy variable for firms with | |
| MGMT_PERF | Management performance | Weighted average of management performance, normalized at percentage |
| ESG_STRAT | Weighted average of | |
| ESG_TEAM | Dummy variable for firms with | |
| Industry | Industry fixed effect | |
| Year | Year fixed effect | |
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