Table 2

Description of the variables included in the model

VariableDescription
Percentage women in entry level positions (WLP)Percentage of women of the total full-time employees in entry level positions. The Bloomberg Gender-Equality Index (BGEI) Reporting Framework began collecting this metric as of FY 2018. In FY 2019, the Bloomberg Gender-Equality Index (BGEI) excluded administrative roles from this definition
Percentage of women new hires (WNH)Provides the percentage of women new hires, of the total new hires during the fiscal year
CEO duality (CD)Indicates whether the company’s Chief Executive Officer (CEO), or equivalent, also serves as the Chair of the board. ‘N’ indicates the two roles are separate
Chairman age (CA)Age of the current chairperson of the board, in years. Where the company has a supervisory board and a management board (two-tier board), this field refers to the chairperson of the supervisory board. Field is part of the Environmental, Social and Governance (ESG) group of fields
The mean gender pay gap waterfall (GPG)Provides percentage difference between men and women’s mean (average) total compensation, the mean gender pay gap, where workforce representation is confirmed to be at least 80%, if available. Otherwise, mean gender pay gap where workforce representation is confirmed to be less than 80% or otherwise unknown
CEO Women (CW)CW takes value 1 if the CEO is a woman, 0 otherwise
Revenue (log) (LRE)Indicator of firm size as measured by Profit and Loss Account Total Revenue on a logarithmic scale
Return on Assets (ROA)Measures the efficiency of a company’s management in generating profits from the total assets on its balance sheet. The higher the result, the more efficient this management is
Financial leverage (LvR)Measures the average assets to average equity. Unit: Actual. Calculated as: Average Total Assets/Average Total Common Equity
Efficiency Ratio (EFFR)Efficiency Ratio (also known as Cost to Income Ratio) is an efficiency measure commonly used in the financial sector. The efficiency ratio measures costs compared to revenues. Unit: Actual
Source(s): Authors’ own work using Bloomberg information

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