Definition of variables
| Variables | Definitions | Data source |
|---|---|---|
| Dependent variable | ||
| log(ΔSGA) | log of quotient of current and previous year Selling General and Administrative expenses for company i in year t | Worldscope |
| Independent variables | ||
| log of quotient of current and previous year revenue for company i in year t | Worldscope | |
| EU_Directive | indicator variable taking value 1 for company-year observations exposed to the EU Directive | |
| Sustainability_performance | log of annual changes in ESG score for company i in year t | Refinitiv |
| Civil_law | indicator variable taking value 1 if a company i resides in France, Sweden, Finland or Norway | cf. Spamann (2010) |
| Common_law | indicator variable taking value 1 if a company i originates from UK | cf. Spamann (2010) |
| Control variables | ||
| Economic_growth | national-level percentage growth in nominal GDP in year t | World Bank |
| Asset_turnover | log of quotient of number of employees and revenue for company i in year t | Worldscope |
| ROA | return on Assets for company i in year t | Worldscope |
| Tobins_q | sum of market value of equity and book value of liabilities divided by total book value of assets for company i in year t | Worldscope |
| Leverage | total assets of a company divided by its total equity for company i in year t | Worldscope |
| Board_size | log of total number of board directors for company i in year t | Worldscope |
| Variables | Definitions | Data source |
|---|---|---|
| log(ΔSGA) | log of quotient of current and previous year Selling General and Administrative expenses for company | Worldscope |
| log of quotient of current and previous year revenue for company | Worldscope | |
| indicator variable taking value 1 for company-year observations exposed to the | ||
| log of annual changes in | Refinitiv | |
| indicator variable taking value 1 if a company | cf. | |
| indicator variable taking value 1 if a company | cf. | |
| national-level percentage growth in nominal | World Bank | |
| log of quotient of number of employees and revenue for company i in year | Worldscope | |
| return on Assets for company i in year | Worldscope | |
| sum of market value of equity and book value of liabilities divided by total book value of assets for company i in year | Worldscope | |
| total assets of a company divided by its total equity for company i in year | Worldscope | |
| log of total number of board directors for company | Worldscope | |
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