Table 2. Definitions of variables...

Table 2.

Definitions of variables

Variables	Abbreviation	Definition
Environmental innovation score	EIS	Environmental innovation score, showing a firm’s ability to minimize environmental costs and customer burden by creating new markets through new technologies and eco-products
ESG score	ESGS	ESG score, reflecting a firm’s performance in environmental, social, and governance (ESG) dimensions
ESG combined score	ESGC	ESG combined scores, reflecting a firm’s overall score based on reported information on the environmental, social, and governance pillars, with an overlay of ESG controversies
CSR strategy score	CSRS	CSR strategy score, reflecting a firm’s integration of economic, social, and environmental dimensions into its daily decision-making processes
R&D intensity	RDI	Research and development (R&D) expenditure is divided by total revenue, indicating innovation investment relative to firm size
Firm size	FS	Firm size, measured by total assets or market capitalization
Leverage	LVG	Leverage, calculated as the ratio of debt to equity
Profitability	PO	Profitability, measured as earnings before interest and taxes (EBIT) divided by total assets
Cash holdings	CH	Cash holdings, calculated as cash and equivalents divided by total assets
Asset turnover	AT	Asset turnover, calculated as net sales as a percentage of total assets
Asset growth	AG	Assets growth, measured as annual change in total assets
Industry dummy	INDUSTRY	A dummy variable that takes a value of 1 if a firm belongs to a specific industry, 0 otherwise
Year dummy	YEAR	A dummy variable for the years included in the study (except the benchmark year)

Variables	Abbreviation	Definition
Environmental innovation score	EIS	Environmental innovation score, showing a firm’s ability to minimize environmental costs and customer burden by creating new markets through new technologies and eco-products
ESG score	ESGS	ESG score, reflecting a firm’s performance in environmental, social, and governance (ESG) dimensions
ESG combined score	ESGC	ESG combined scores, reflecting a firm’s overall score based on reported information on the environmental, social, and governance pillars, with an overlay of ESG controversies
CSR strategy score	CSRS	CSR strategy score, reflecting a firm’s integration of economic, social, and environmental dimensions into its daily decision-making processes
R&D intensity	RDI	Research and development (R&D) expenditure is divided by total revenue, indicating innovation investment relative to firm size
Firm size	FS	Firm size, measured by total assets or market capitalization
Leverage	LVG	Leverage, calculated as the ratio of debt to equity
Profitability	PO	Profitability, measured as earnings before interest and taxes (EBIT) divided by total assets
Cash holdings	CH	Cash holdings, calculated as cash and equivalents divided by total assets
Asset turnover	AT	Asset turnover, calculated as net sales as a percentage of total assets
Asset growth	AG	Assets growth, measured as annual change in total assets
Industry dummy	INDUSTRY	A dummy variable that takes a value of 1 if a firm belongs to a specific industry, 0 otherwise
Year dummy	YEAR	A dummy variable for the years included in the study (except the benchmark year)

Note(s):

The INDUSTRY classification includes sectors such as manufacturing; processing of food from agricultural products; manufacturing of textiles, chemicals, machinery, automobiles, and electronics; and other related industries. These sectors are selected to capture a broad representation of economic activities across various domains. Regarding the temporal dimension, YEAR serves as a dummy variable in the study, spanning multiple years. One year is designated as the benchmark for comparison, allowing for the analysis of trends and variations over time while controlling annual fluctuations

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