Table 2 The interaction terms... | Emerald Publishing

Table 2

The interaction terms

Interaction terms	Definitions	Hypotheses
$D e c r e a s e \times \log (Δ R e v e n u e)$	Activates for company-year obs. with decrease in revenue
$D e c r e a s e \times \log (Δ R e v e n u e) \times S u c c e s s i v e D e c r e a s e$	Activates for company-year obs. with decrease in revenue for two consecutive periods
$D e c r e a s e \times \log (Δ R e v e n u e) \times E U_D i r e c t i v e$	Activates for company-year observations exposed to the EU Directive	H1a and b
$D e c r e a s e \times \log (Δ R e v e n u e) \times E U D i r e c t i v e \times \log (S u s t a i n a b i l i t y_p e r f o r m a n c e)$	Accounts for changes in sustainability performance of company-year obs. exposed to the EU Directive	H2
$D e c r e a s e \times \log (Δ R e v e n u e) \times C o u n t r y$	Activates for company-year observations in the EU country considered for the regression	H3a and b

Interaction terms	Definitions	Hypotheses
$D e c r e a s e \times \log (Δ R e v e n u e)$	Activates for company-year obs. with decrease in revenue
$D e c r e a s e \times \log (Δ R e v e n u e) \times S u c c e s s i v e D e c r e a s e$	Activates for company-year obs. with decrease in revenue for two consecutive periods
$D e c r e a s e \times \log (Δ R e v e n u e) \times E U_D i r e c t i v e$	Activates for company-year observations exposed to the EU Directive	H1a and b
$D e c r e a s e \times \log (Δ R e v e n u e) \times E U D i r e c t i v e \times \log (S u s t a i n a b i l i t y_p e r f o r m a n c e)$	Accounts for changes in sustainability performance of company-year obs. exposed to the EU Directive	H2
$D e c r e a s e \times \log (Δ R e v e n u e) \times C o u n t r y$	Activates for company-year observations in the EU country considered for the regression	H3a and b

Source(s): Created by authors