Variable descriptions
| Variable | Measurement | Source |
|---|---|---|
| Dependent variable | ||
| SDG#_discl | Disclosure related to each SDG#, measured as the number of hits for the respective search terms (see Table 2), scaled by the total word count of the annual report. For ease of interpretation, the resulting value is multiplied by 100 | Textual analysis |
| SDG_discl | Sum of SDG1_discl to SDG17_discl | Textual analysis |
| Institutional variables | ||
| inst_cc | Control of Corruption, capturing perceptions of the extent to which public power is exercised for private gain, including petty and grand forms of corruption. The score ranges from about −2.5 (worst)to about +2.5 (best) | Worldbank |
| inst_ge | Government Effectiveness, capturing perceptions of the quality of public services, the quality of the civil service and the degree of its independence from political pressures, the quality of policy formulation and implementation and the credibility of the government’s commitment to such policies. The score ranges from about −2.5 (worst)to about +2.5 (best) | Worldbank |
| inst_ps | Political Stability and Absence of Violence/Terrorism, capturing perceptions of the extent to which, The score ranges from about −2.5 (worst)to about +2.5 (best) | Worldbank |
| inst_rq | Regulatory Quality, capturing perceptions of the likelihood of political instability and/or politically-motivated violence, including terrorism. The score ranges from about −2.5 (worst)to about +2.5 (best) | Worldbank |
| inst_rl | Rule of Law, capturing perceptions of the extent to which agents have confidence in and abide by the rules of society, and in particular the quality of contract enforcement, property rights, the policy and the courts, as well as the likelihood of crime and violence. The score ranges from about −2.5 (worst)to about +2.5 (best) | Worldbank |
| inst_va | Voice and Accountability, capturing perceptions of the extent to which a country’s citizens are able to participate in selecting their government, as well as freedom of expression, freedom of association and a free media. The score ranges from about −2.5 (worst)to about +2.5 (best) | Worldbank |
| region | Categorical variable, distinguishing three regions. South Africa (=0), regions with strong institutions (=1) and regions with weak institutions (=2). The region with strong institutions comprises Botswana, Ghana, Mauritius, Namibia, Rwanda and Seychelles. The region with weak institutions comprises Egypt, Swaziland, Kenya, Malawi, Nigeria, Tanzania, Uganda, Zambia and Zimbabwe | |
| Stakeholder variables | ||
| leverage | Firm leverage, measured as total debt divided by total assets | LSEG |
| crosslisting | Dummy variable, equals 1 if the firm is cross-listed and 0 otherwise | LSEG |
| oda | Development assistance, measured as the net official development assistance and official aid in USD per capita received in a respective year | Worldbank |
| Legitimacy-related variables | ||
| esi | Dummy variable equals 1 if the firm belongs to an environmentally sensitive industry (basic material, energy or utilities) and 0 otherwise | LSEG |
| Control variables | ||
| firmsize | Firm size, measured as natural logarithm of the firm’s total assets | LSEG |
| profitability | Financial performance of the firm, measured as earnings before interest and taxes (EBIT), scaled by total assets | LSEG |
| length | Length of the annual report, measured as the number of words | Textual analysis |
| Variable | Measurement | Source |
|---|---|---|
| SDG#_discl | Disclosure related to each SDG#, measured as the number of hits for the respective search terms (see | Textual analysis |
| SDG_discl | Sum of SDG1_discl to SDG17_discl | Textual analysis |
| inst_cc | Control of Corruption, capturing perceptions of the extent to which public power is exercised for private gain, including petty and grand forms of corruption. The score ranges from about −2.5 (worst)to about +2.5 (best) | Worldbank |
| inst_ge | Government Effectiveness, capturing perceptions of the quality of public services, the quality of the civil service and the degree of its independence from political pressures, the quality of policy formulation and implementation and the credibility of the government’s commitment to such policies. The score ranges from about −2.5 (worst)to about +2.5 (best) | Worldbank |
| inst_ps | Political Stability and Absence of Violence/Terrorism, capturing perceptions of the extent to which, The score ranges from about −2.5 (worst)to about +2.5 (best) | Worldbank |
| inst_rq | Regulatory Quality, capturing perceptions of the likelihood of political instability and/or politically-motivated violence, including terrorism. The score ranges from about −2.5 (worst)to about +2.5 (best) | Worldbank |
| inst_rl | Rule of Law, capturing perceptions of the extent to which agents have confidence in and abide by the rules of society, and in particular the quality of contract enforcement, property rights, the policy and the courts, as well as the likelihood of crime and violence. The score ranges from about −2.5 (worst)to about +2.5 (best) | Worldbank |
| inst_va | Voice and Accountability, capturing perceptions of the extent to which a country’s citizens are able to participate in selecting their government, as well as freedom of expression, freedom of association and a free media. The score ranges from about −2.5 (worst)to about +2.5 (best) | Worldbank |
| region | Categorical variable, distinguishing three regions. South Africa (=0), regions with strong institutions (=1) and regions with weak institutions (=2). The region with strong institutions comprises Botswana, Ghana, Mauritius, Namibia, Rwanda and Seychelles. The region with weak institutions comprises Egypt, Swaziland, Kenya, Malawi, Nigeria, Tanzania, Uganda, Zambia and Zimbabwe | |
| leverage | Firm leverage, measured as total debt divided by total assets | |
| crosslisting | Dummy variable, equals 1 if the firm is cross-listed and 0 otherwise | |
| oda | Development assistance, measured as the net official development assistance and official aid in | Worldbank |
| esi | Dummy variable equals 1 if the firm belongs to an environmentally sensitive industry (basic material, energy or utilities) and 0 otherwise | |
| firmsize | Firm size, measured as natural logarithm of the firm’s total assets | |
| profitability | Financial performance of the firm, measured as earnings before interest and taxes ( | |
| length | Length of the annual report, measured as the number of words | Textual analysis |
This table provides an overview of the variables used in the analysis, including their descriptions and data sources.
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