Definition of variables
| Variables | Description | Source |
|---|---|---|
| 1. Corporate cash holdings | ||
| Cash holding level (CHL) | Cash and cash equivalent divided by total assets | Akgün (2020) |
| Cash2 | The ratio of cash and equivalents to total assets minus cash and equivalents | Yuan and Gao (2022) |
| Cash interactive effect (CIE) | Cash holding level and multiple by total liabilities divided by total assets | Akgün and Karataş (2021) |
| Cash flow from operating-to-operating revenue (CAFOR) | Cash flow from operating divided by operating revenue | Akgün (2020) |
| Net cash flow from operating to total assets (NCFOTA) | Net cash flow from operating divided by total assets | Akgün (2020) |
| 2. Carbon emission ratios | ||
| CO2 intensity | Ratio of carbon emission (kg) to equivalent energy use | wits.worldbank.org |
| CO2 emissions per capita | Ratio of carbon emission (tons) to per capita | wits.worldbank.org |
| 3. Firm performance ratios | ||
| Return on assets (ROA) | Earnings after tax divided by total assets and multiplied by 100 | Akgün (2020) |
| Return on equity (ROE) | Earnings after tax divided by firm’s shareholders’ equity and multiplied by 100 | Akgün (2020) |
| EBIT margin (EBITM) | This indicator is calculated by adding interest and tax back to earnings after tax. Obtained value was divided by firm’s sales and multiplied by 100 | Akgün (2020) |
| Tobin’s Q | Market Capitalization divided by total assets | Knezevic and Dobromirov (2016) |
| 4. Working capital ratios | ||
| Gross working capital (GWC) | Current assets divided by total assets | Akgün (2021) |
| Net working capital (NWC) | Current assets minus current liabilities divided by total assets | Akgün (2021) |
| Account receivables to total assets (ARTA) | Account receivables divided by total assets | Martinez-Sola et al. (2014) |
| Accounts payable to total assets (APTA) | Accounts payable divided by total assets | Akgün (2020) |
| Liquidity ratio (LiquidR) | Current assets minus Inventory divided by total current liabilities | Akgün (2020) |
| Current ratio (CurrentR) | Current assets over current liabilities | Akgün (2020) |
| Cash ratio (CASHR) | Cash and cash equivalents over current liabilities | Akgün (2020) |
| 5. Control variables | ||
| Firm size (TA) | Natural logarithm of total assets in $US | Akgün (2020) |
| Firm leverage (LEVERAG) | Total debt divided by total assets | Akgün (2020) |
| Variables | Description | Source |
|---|---|---|
| Cash holding level (CHL) | Cash and cash equivalent divided by total assets | |
| Cash2 | The ratio of cash and equivalents to total assets minus cash and equivalents | |
| Cash interactive effect (CIE) | Cash holding level and multiple by total liabilities divided by total assets | |
| Cash flow from operating-to-operating revenue (CAFOR) | Cash flow from operating divided by operating revenue | |
| Net cash flow from operating to total assets (NCFOTA) | Net cash flow from operating divided by total assets | |
| CO2 intensity | Ratio of carbon emission (kg) to equivalent energy use | wits.worldbank.org |
| CO2 emissions per capita | Ratio of carbon emission (tons) to per capita | wits.worldbank.org |
| Return on assets (ROA) | Earnings after tax divided by total assets and multiplied by 100 | |
| Return on equity (ROE) | Earnings after tax divided by firm’s shareholders’ equity and multiplied by 100 | |
| EBIT margin (EBITM) | This indicator is calculated by adding interest and tax back to earnings after tax. Obtained value was divided by firm’s sales and multiplied by 100 | |
| Tobin’s | Market Capitalization divided by total assets | |
| Gross working capital (GWC) | Current assets divided by total assets | |
| Net working capital (NWC) | Current assets minus current liabilities divided by total assets | |
| Account receivables to total assets (ARTA) | Account receivables divided by total assets | |
| Accounts payable to total assets (APTA) | Accounts payable divided by total assets | |
| Liquidity ratio (LiquidR) | Current assets minus Inventory divided by total current liabilities | |
| Current ratio (CurrentR) | Current assets over current liabilities | |
| Cash ratio (CASHR) | Cash and cash equivalents over current liabilities | |
| Firm size (TA) | Natural logarithm of total assets in $US | |
| Firm leverage (LEVERAG) | Total debt divided by total assets | |
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