Table 6 Variables composition summary... | Emerald Publishing

Table 6

Variables composition summary

Variable	Code	Measure	Source
Dependent variable Proxy for IC-VD (“DISC_SCORE”)
VD of IC	DISC_SCO	Composite index of IC-VD calculated as combination of business elements	Annual reports
Independent variables Corporate ethics
BE	ETH_SCO	The scores provided by the Ethisphere Institute represent the firms' level of moral development or BE	Ethisphere (2015)
CSR	CSR_INDEX	CSR is a composite index calculated as a combination of 40 indicators reflecting the principles of individual and collective social responsibility of each company	Annual reports Dias et al. (2017)
Control variables Characteristics of the firm and characteristics of the environment of the firm
Degree of innovation intensity	INVT	Ratio between the research and development costs and the turnover	Ethisphere (2015) Annual reports
Effective tax rate	TAX_PAID	Tax expenses divided by earnings before interest and taxes	Ethisphere (2015) Annual reports
Country level ethics	ETH_COUNTRY	A score ranging from 1 to 7, with 1 indicating a very low level of country ethics, and 7 indicating a very high level of country ethics	World Economic Forum (2015)
Percentage of women on board of directors	WOM_BOARD	Proportion of women on boards of directors	Ethisphere (2015)
Legal system	LEG_SYST	A binary variable that scores 1 if the company belongs to the Anglo-Saxon legal system, and 0 otherwise	The World Bank (2015)
Leverage level	LEVE	Total debts reported to total assets	Annual reports
Pollutant sector	POL_SECTOR	A binary variable that scores 1 if the company belongs to a pollutant sector, and 0 otherwise	Annual reports

Variable	Code	Measure	Source
Dependent variableProxy for IC-VD (“DISC_SCORE”)
VD of IC	DISC_SCO	Composite index of IC-VD calculated as combination of business elements	Annual reports
Independent variablesCorporate ethics
BE	ETH_SCO	The scores provided by the Ethisphere Institute represent the firms' level of moral development or BE	Ethisphere (2015)
CSR	CSR_INDEX	CSR is a composite index calculated as a combination of 40 indicators reflecting the principles of individual and collective social responsibility of each company	Annual reportsDias et al. (2017)
Control variablesCharacteristics of the firm and characteristics of the environment of the firm
Degree of innovation intensity	INVT	Ratio between the research and development costs and the turnover	Ethisphere (2015)Annual reports
Effective tax rate	TAX_PAID	Tax expenses divided by earnings before interest and taxes	Ethisphere (2015)Annual reports
Country level ethics	ETH_COUNTRY	A score ranging from 1 to 7, with 1 indicating a very low level of country ethics, and 7 indicating a very high level of country ethics	World Economic Forum (2015)
Percentage of women on board of directors	WOM_BOARD	Proportion of women on boards of directors	Ethisphere (2015)
Legal system	LEG_SYST	A binary variable that scores 1 if the company belongs to the Anglo-Saxon legal system, and 0 otherwise	The World Bank (2015)
Leverage level	LEVE	Total debts reported to total assets	Annual reports
Pollutant sector	POL_SECTOR	A binary variable that scores 1 if the company belongs to a pollutant sector, and 0 otherwise	Annual reports

Source(s): Authors' calculation