Definition and data sources of variables
| Variables | Definitions | Data source |
|---|---|---|
| WACC | Weighted average cost of capital | Refinitiv Eikon |
| COE | Weighted average cost of equity, calculated using the Capital Asset Pricing Model (CAPM) | Refinitiv Eikon |
| COD | After-tax weighted average cost of debt, calculated as interest expense scaled by total debt | Refinitiv Eikon |
| Nature_Dep | Firm-level nature dependence. Computed as the revenue-weighted average dependence of each firm on non-cultural ecosystem services. Only ecosystem services with a segment-level dependence score of at least 1 are included in the calculation | Garel et al. (2026) |
| Nature_High | Alternative measure of firm-level nature dependence. It captures the number of non-cultural ecosystem services for which a firm's revenue-weighted dependence score is equal to or greater than 4 | Garel et al. (2026) |
| Nature_Average | Alternative measure of firm-level nature dependence. It is defined as the annual average value of Nature_Dep across all firms in the sample. It captures the overall level of firms' revenue-weighted dependence on non-cultural ecosystem services in a given year | Authors' calculation |
| Size | Firm size, measured as Natural logarithm of total assets | Refinitiv Eikon |
| ROA | Return on asset, measured as Total net income divided by average total assets | Refinitiv Eikon |
| Lev | Leverage, measured as Total debts (short-term and long-term) divided by total assets | Refinitiv Eikon |
| Capex | Capital expenditure, measured as Capital expenditure divided by total assets | Refinitiv Eikon |
| Salesgrowth | Sale growth, measured as Annual percentage change in sales revenue | Refinitiv Eikon |
| Tangibility | Firm tangibility, measured as Total fixed assets scaled by total assets | Refinitiv Eikon |
| Tobinsq | Firm value, measured as Ratio of the firm's market value (market capitalization plus total debt) to the book value of total assets | Refinitiv Eikon |
| GDP | Economic development, measured as Log of GDP per capita for the firm's country | World Bank |
| CFVolatility | Earnings volatility, measured as Standard deviation of operating cash flows computed over a rolling three-year window for each firm | Authors' calculation |
| Vulnerability | The climate vulnerability of human societies in a given country to adverse effects from climate-related events | The Notre Dame Global Adaptation Initiative Index (https://gain.nd.edu/our-work/country-index/) |
| Variables | Definitions | Data source |
|---|---|---|
| WACC | Weighted average cost of capital | Refinitiv Eikon |
| COE | Weighted average cost of equity, calculated using the Capital Asset Pricing Model (CAPM) | Refinitiv Eikon |
| COD | After-tax weighted average cost of debt, calculated as interest expense scaled by total debt | Refinitiv Eikon |
| Nature_Dep | Firm-level nature dependence. Computed as the revenue-weighted average dependence of each firm on non-cultural ecosystem services. Only ecosystem services with a segment-level dependence score of at least 1 are included in the calculation | |
| Nature_High | Alternative measure of firm-level nature dependence. It captures the number of non-cultural ecosystem services for which a firm's revenue-weighted dependence score is equal to or greater than 4 | |
| Nature_Average | Alternative measure of firm-level nature dependence. It is defined as the annual average value of | Authors' calculation |
| Size | Firm size, measured as Natural logarithm of total assets | Refinitiv Eikon |
| ROA | Return on asset, measured as Total net income divided by average total assets | Refinitiv Eikon |
| Lev | Leverage, measured as Total debts (short-term and long-term) divided by total assets | Refinitiv Eikon |
| Capex | Capital expenditure, measured as Capital expenditure divided by total assets | Refinitiv Eikon |
| Salesgrowth | Sale growth, measured as Annual percentage change in sales revenue | Refinitiv Eikon |
| Tangibility | Firm tangibility, measured as Total fixed assets scaled by total assets | Refinitiv Eikon |
| Tobinsq | Firm value, measured as Ratio of the firm's market value (market capitalization plus total debt) to the book value of total assets | Refinitiv Eikon |
| GDP | Economic development, measured as Log of GDP per capita for the firm's country | World Bank |
| CFVolatility | Earnings volatility, measured as Standard deviation of operating cash flows computed over a rolling three-year window for each firm | Authors' calculation |
| Vulnerability | The climate vulnerability of human societies in a given country to adverse effects from climate-related events | The Notre Dame Global Adaptation Initiative Index ( |
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