Table A1. Variables Variable name... | Emerald Publishing

Table A1.

Variables

Variable name	Notation	Definition	Source
Foreign divestment
Foreign divestment	FD	Number of foreign divestment deals a firm completed in a given year. Each transaction represents a distinct divestment of a foreign subsidiary or equity stake, identified from different sources. Conceptually, it reflects any voluntary or forced reduction of a firm’s engagement in cross-border activities (Benito and Welch, 1997)	Primary data from annual reports, press releases, personal contacts, and databases
Foreign divestment dummy	FD dummy	Equals 1 if the firm undertook at least One foreign divestment in a given year and 0 otherwise	Primary data
Insolvency risk
Credit default swap spread	CDS	Credit derivative spread that transfers a firm’s default risk between Two agents for a fixed time period; higher values indicate greater insolvency risk	RMI-NUS
Distance to default	DD	Annual average of a firm’s distance to default based on stock price volatility; higher values indicate greater stability	RMI-NUS
CSR activities
Corporate social responsibility score	CSR score	Composite ESG score (0–100) represents the level of corporate social responsibility activity performed by a firm	LSEG (refinitiv eikon)
High CSR		Dummy variable equal to 1 for firms in the top quartile of CSR scores, 0 otherwise	LSEG
Controls
Firm size	Size	Natural logarithm of total assets	LSEG
Leverage	Leverage	Ratio of total debt to total assets (TLTA), reflecting a firm’s capital structure	LSEG
Liquidity	Liquidity	Current assets divided by current liabilities, measuring short-term solvency	LSEG
Profitability	ROA	Net income divided by total assets	LSEG
Firm performance	Tobin’s Q	Market value of a firm divided by the replacement cost of its assets	LSEG
Tangibility	Tangibility	Ratio of net property, plant, and equipment to total assets	LSEG
International experience	Int. Experience	Ratio of foreign sales to total sales	LSEG

Variable name	Notation	Definition	Source
Foreign divestment
Foreign divestment	FD	Number of foreign divestment deals a firm completed in a given year. Each transaction represents a distinct divestment of a foreign subsidiary or equity stake, identified from different sources. Conceptually, it reflects any voluntary or forced reduction of a firm’s engagement in cross-border activities (Benito and Welch, 1997)	Primary data from annual reports, press releases, personal contacts, and databases
Foreign divestment dummy	FD dummy	Equals 1 if the firm undertook at least One foreign divestment in a given year and 0 otherwise	Primary data
Insolvency risk
Credit default swap spread	CDS	Credit derivative spread that transfers a firm’s default risk between Two agents for a fixed time period; higher values indicate greater insolvency risk	RMI-NUS
Distance to default	DD	Annual average of a firm’s distance to default based on stock price volatility; higher values indicate greater stability	RMI-NUS
CSR activities
Corporate social responsibility score	CSR score	Composite ESG score (0–100) represents the level of corporate social responsibility activity performed by a firm	LSEG (refinitiv eikon)
High CSR		Dummy variable equal to 1 for firms in the top quartile of CSR scores, 0 otherwise	LSEG
Controls
Firm size	Size	Natural logarithm of total assets	LSEG
Leverage	Leverage	Ratio of total debt to total assets (TLTA), reflecting a firm’s capital structure	LSEG
Liquidity	Liquidity	Current assets divided by current liabilities, measuring short-term solvency	LSEG
Profitability	ROA	Net income divided by total assets	LSEG
Firm performance	Tobin’s Q	Market value of a firm divided by the replacement cost of its assets	LSEG
Tangibility	Tangibility	Ratio of net property, plant, and equipment to total assets	LSEG
International experience	Int. Experience	Ratio of foreign sales to total sales	LSEG