Variable definitions
| Variables | Symbols | Descriptions |
|---|---|---|
| Firm’s non-financial performance | ESG_Performance | Non-financial performance (Eikon Refinitv database) |
| Environmental sustainability in executive compensation | Env_Sust_Comp | Environmental integration of sustainability in executives’ compensation |
| Social sustainability in executive compensation | Soc_Sust_Comp | Social integration of sustainability in executives’ compensation |
| Corporate governance characteristic | CG_Characteristic | Corporate governance features affecting the firm’s sustainability orientation |
| Board independence | BoD_Ind | Percentage of independent directors on the board |
| Board gender diversity | BoD_Gend | Percentage of female directors on the board |
| Board size | BoD_Size | Natural log of the number of board members |
| CEO–chair separation | CEO–chair | Dummy variable that equals 1 when the CEO and the chair are not the same person and 0 otherwise |
| Sustainability committee | Sust_com | Dummy variable that equals 1 if there is a sustainability committee and 0 otherwise |
| Compensation committee independence | CompCom_Ind | Percentage of independent directors on the compensation committee |
| The effect of board independence on environmental sustainability | Env_Sust_Comp × BoD_Ind | Interaction between environmental sustainability and board independence |
| The effect of board independence on social sustainability | Soc_Sust_Comp × BoD_Ind | Interaction between social sustainability and board independence |
| The effect of board gender diversity on environmental sustainability | Env_Sust_Comp × BoD_Gend | Interaction between environmental sustainability and board gender diversity |
| The effect of board gender diversity on social sustainability | Soc_Sust_Comp × BoD_Gend | Interaction between social sustainability and board gender diversity |
| The effect of board size on environmental sustainability | Env_Sust_Comp × BoD_Size | Interaction between environmental sustainability and board size |
| The effect of board size on social sustainability | Soc_Sust_Comp × BoD_Size | Interaction between social sustainability and board size |
| The effect of CEO duality on environmental sustainability | Env_Sust_Comp × CEO–Chair | Interaction between environmental sustainability and CEO duality |
| The effect of CEO duality on social sustainability | Soc_Sust_Comp × CEO–Chair | Interaction between social sustainability and CEO duality |
| The effect of the sustainability committee on environmental sustainability | Env_Sust_Comp × Sust_com | Interaction between environmental sustainability and sustainability committee |
| The effect of the sustainability committee on social sustainability | Soc_Sust_Comp × Sust_com | Interaction between social sustainability and sustainability committee |
| The effect of compensation committee independence on environmental sustainability | Env_Sust_Comp × CompCom_Ind | Interaction between environmental sustainability and compensation committee independence |
| The effect of compensation committee independence on social sustainability | Soc_Sust_Comp × CompCom_Ind | Interaction between social sustainability and compensation committee independence |
| Firm size | Size | Average revenues |
| Profitability | ROA | Return on assets |
| Variables | Symbols | Descriptions |
|---|---|---|
| Firm’s non-financial performance | Non-financial performance (Eikon Refinitv database) | |
| Environmental sustainability in executive compensation | Environmental integration of sustainability in executives’ compensation | |
| Social sustainability in executive compensation | Social integration of sustainability in executives’ compensation | |
| Corporate governance characteristic | Corporate governance features affecting the firm’s sustainability orientation | |
| Board independence | Percentage of independent directors on the board | |
| Board gender diversity | Percentage of female directors on the board | |
| Board size | Natural log of the number of board members | |
| CEO–chair separation | Dummy variable that equals 1 when the CEO and the chair are not the same person and 0 otherwise | |
| Sustainability committee | Dummy variable that equals 1 if there is a sustainability committee and 0 otherwise | |
| Compensation committee independence | Percentage of independent directors on the compensation committee | |
| The effect of board independence on environmental sustainability | Interaction between environmental sustainability and board independence | |
| The effect of board independence on social sustainability | Interaction between social sustainability and board independence | |
| The effect of board gender diversity on environmental sustainability | Interaction between environmental sustainability and board gender diversity | |
| The effect of board gender diversity on social sustainability | Interaction between social sustainability and board gender diversity | |
| The effect of board size on environmental sustainability | Interaction between environmental sustainability and board size | |
| The effect of board size on social sustainability | Interaction between social sustainability and board size | |
| The effect of CEO duality on environmental sustainability | Interaction between environmental sustainability and CEO duality | |
| The effect of CEO duality on social sustainability | Interaction between social sustainability and CEO duality | |
| The effect of the sustainability committee on environmental sustainability | Interaction between environmental sustainability and sustainability committee | |
| The effect of the sustainability committee on social sustainability | Interaction between social sustainability and sustainability committee | |
| The effect of compensation committee independence on environmental sustainability | Interaction between environmental sustainability and compensation committee independence | |
| The effect of compensation committee independence on social sustainability | Interaction between social sustainability and compensation committee independence | |
| Firm size | Average revenues | |
| Profitability | Return on assets |
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