Summary of variables and their measurement
| Abbreviated name | Full name | Variable description |
|---|---|---|
| Dependent variable | ||
| CSRD | CSR disclosure | The CSRD index was developed by using the scores of “1” if the company discloses any CSR items and “0” if it does not |
| Independent and moderating variable | ||
| FC | Family control | A company is considered a “family control” when the controlling shareholder owns at least 10% of the company, and at least one member of the controlling family is on the board of directors or in top management (Biswas et al., 2022; El Ghoul et al., 2016) |
| PC | Political connections | A ratio of the number of politicians on the board of directors to the total number of board members |
| AUDIT | Audit committees | A ratio of the number of audit committee members to the total board of directors |
| AUDIT_COM | Audit committees size compliance | A dummy variable where 1 if the audit committees have at least three members (minimum required by CGC 2018); 0 otherwise |
| FC × AUDIT | AUDIT × FC | Interaction between the audit committees and family control |
| PC × AUDIT | AUDIT × PC | Interaction between the audit committees and political connections |
| Control variable | ||
| FSIZE | Firm size | The logarithm of total assets |
| ROA | Return on assets | The ratio of net income to total assets |
| CAPIN | Capital intensity | A ratio of capital expenditure divided by total assets |
| LEV | Leverage | The ratio of total debts is divided by total assets |
| KZ | Financial constraints | As a proxy of financial constraint, measured following the study of Bae et al. (2022) and Schauer et al. (2019) |
| CASHH | Cash holding | A ratio of total cash to total assets |
| AGE | Log AGE | The logarithm of the number of years in business |
| BOARD | Board size | Number of total members on the board of directors |
| INDBM | Independent directors | Number of independent members on the board of directors |
| FBM | Female directors | Number of female members on the board of directors |
| Additional variables | ||
| CGC | Corporate Governance Code 2018 | We created a dummy variable to divide the sample into two periods: coded as 0 for the pre-CGC-2018 period (2013–2018) and 1 for the post-CGC-2018 period (2019–2023) |
| ES | Environmentally sensitive | We created a dummy variable coded as 1 for environmentally sensitive (ES) firms and 0 for environmentally non-sensitive (ENS) firms. Environmentally sensitive firms are defined as those with a direct environmental footprint – such as those operating in the pharmaceuticals and chemicals, cement, fuel and power, tanneries, oil and fuel refineries and ship-breaking industries – following Kumari et al. (2022) |
| INSTO | Institutional ownership | The percentage of shareholdings by institutional investors. Based on the mean value, we set 1 for the higher value and 0, otherwise, to classify high and low institutional ownership |
| INDACM | Independent audit committee’s member | Number of independent directors on the audit committees |
| FMAC | Female audit committees’ members | Number of female directors on the audit committees |
| AEXAC | Accounting experts on the audit committees | Number of accounting experts (CMA/CA/PhD in accounting and finance) in the audit committees |
| Industry fixed effect | Industry dummy | An industry dummy was created for 14 industries, where 1 is for the current industry and 0 is for otherwise |
| Year fixed effect | Year dummy | A year dummy was created for the 10-year period, where 1 is for the current year and 0 is for otherwise |
| Abbreviated name | Full name | Variable description |
|---|---|---|
| The | ||
| Family control | A company is considered a “family control” when the controlling shareholder owns at least 10% of the company, and at least one member of the controlling family is on the board of directors or in top management ( | |
| Political connections | A ratio of the number of politicians on the board of directors to the total number of board members | |
| Audit committees | A ratio of the number of audit committee members to the total board of directors | |
| AUDIT_COM | Audit committees size compliance | A dummy variable where 1 if the audit committees have at least three members (minimum required by |
| Interaction between the audit committees and family control | ||
| Interaction between the audit committees and political connections | ||
| Firm size | The logarithm of total assets | |
| Return on assets | The ratio of net income to total assets | |
| Capital intensity | A ratio of capital expenditure divided by total assets | |
| Leverage | The ratio of total debts is divided by total assets | |
| Financial constraints | As a proxy of financial constraint, measured following the study of | |
| Cash holding | A ratio of total cash to total assets | |
| Log | The logarithm of the number of years in business | |
| Board size | Number of total members on the board of directors | |
| Independent directors | Number of independent members on the board of directors | |
| Female directors | Number of female members on the board of directors | |
| Corporate Governance Code 2018 | We created a dummy variable to divide the sample into two periods: coded as 0 for the pre-CGC-2018 period (2013–2018) and 1 for the post-CGC-2018 period (2019–2023) | |
| Environmentally sensitive | We created a dummy variable coded as 1 for environmentally sensitive ( | |
| Institutional ownership | The percentage of shareholdings by institutional investors. Based on the mean value, we set 1 for the higher value and 0, otherwise, to classify high and low institutional ownership | |
| Independent audit committee’s member | Number of independent directors on the audit committees | |
| Female audit committees’ members | Number of female directors on the audit committees | |
| Accounting experts on the audit committees | Number of accounting experts (CMA/CA/PhD in accounting and finance) in the audit committees | |
| Industry fixed effect | Industry dummy | An industry dummy was created for 14 industries, where 1 is for the current industry and 0 is for otherwise |
| Year fixed effect | Year dummy | A year dummy was created for the 10-year period, where 1 is for the current year and 0 is for otherwise |
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