The definition of variables
| Variables | Definition | Data source |
|---|---|---|
| Total assets | Book value of total assets | Orbis |
| Equity | Book value of equity | Orbis |
| Operating profit/loss (EBIT) | Operating profit (loss) before interest and tax | Orbis |
| Net income (NI) | Net income attributable to shareholders | Orbis |
| Return on Equity (ROE) | Net income divided by equity | Author’s calculations |
| Return on Assets (ROA) | EBIT divided by total assets | Author’s calculations |
| Leverage (times) | Total assets divided by equity | Author’s calculations |
| Net income to EBIT ratio | Net income divided by EBIT | Author’s calculations |
| Double negative | Dummy equal to 1 if both EBIT and NI are negative | Author’s calculations |
| Market capitalization | Market value of equity (market capitalization), computed as share price times shares outstanding; used in logarithmic form in the valuation regressions | Orbis |
| Refinitiv ESG score | Composite ESG score provided by Refinitiv, ranging from 0 to 100, where higher values indicate stronger overall ESG performance | Refinitiv |
| Variables | Definition | Data source |
|---|---|---|
| Total assets | Book value of total assets | Orbis |
| Equity | Book value of equity | Orbis |
| Operating profit/loss (EBIT) | Operating profit (loss) before interest and tax | Orbis |
| Net income (NI) | Net income attributable to shareholders | Orbis |
| Return on Equity (ROE) | Net income divided by equity | Author’s calculations |
| Return on Assets (ROA) | EBIT divided by total assets | Author’s calculations |
| Leverage (times) | Total assets divided by equity | Author’s calculations |
| Net income to EBIT ratio | Net income divided by EBIT | Author’s calculations |
| Double negative | Dummy equal to 1 if both EBIT and NI are negative | Author’s calculations |
| Market capitalization | Market value of equity (market capitalization), computed as share price times shares outstanding; used in logarithmic form in the valuation regressions | Orbis |
| Refinitiv ESG score | Composite ESG score provided by Refinitiv, ranging from 0 to 100, where higher values indicate stronger overall ESG performance | Refinitiv |
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