Table 5

Description of variables

VariableDefinitionDescriptionSourceReference
Cost of DebtCoDDebt component of the WACC (Weighted Average Cost of Debt)LSEGAlves and Meneses (2024) 
Circular Intellectual Capital (CIC) DisclosureCICDNatural logarithm of the number of posts including information on one or more CIC itemsAuthors' elaboration 
Circular Intellectual Capital (CIC) MentionsCICMNatural logarithm of CIC mentions contained in CIC-related postsAuthors' elaboration 
SizeSIZENatural logarithm of total assetsLSEGHamrouni et al. (2019), Eliwa et al. (2021) 
LeverageLEVRatio between total debt and total assetsLSEGHamrouni et al. (2019), Eliwa et al. (2021) 
ProfitabilityROERatio between net income and total equity (ROE)LSEGMichelon and Parbonetti (2012), Malik and Kashiramka (2024) 
Board SizeB_SIZETotal number of directors sitting on the boardLSEGMichelon and Parbonetti (2012), L'Abate et al. (2024a,b) 
Board IndependenceB_INDThe percentage of independent directors out of the total number of board membersLSEGBhuiyan and Nguyen (2020), Michelon and Parbonetti (2012) 
Ceo DualityCEO_D(1) if the CEO is also the chairman of the board, and (0) otherwiseLSEGMichelon and Parbonetti (2012), Nicolò and Andrades-Pena (2024) 
ESG ScoreESG_SOverall corporate sustainability performance score, including social, governance, and environmental pillarsLSEGNicolò and Andrades-Pena (2024) 
Environmental SensitivityENV_S(1) if the company operates in an environmentally sensitive sector, and (0) otherwiseLSEGBranco and Rodrigues (2008), Nicolò et al. (2025b) 

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