Variable definition
| Ln(EnvDisclosure) | The log of the weighted index computed using factor loadings of four environmental disclosure measures BioDiversity, ClimateChange, Env_Investments and SpillImpactReduction (please see Table 1 for further details |
| BioDiversity_indicator | An indicator variable that equals 1 if the firm reports on its impact on biodiversity or on activities to reduce its impact on the native ecosystems and species, as well as the biodiversity of protected and sensitive areas, 0 otherwise (Asset4 ENERDP019) |
| ClimateChange_indicator | An indicator variable that equals 1 if the firm reports about its awareness on commercial risks and opportunities of climate change, 0 otherwise (Asset4 ENERDP089) |
| Env_Investments_indicator | An indicator variable that equals 1 if the firm reports on making proactive environmental investments or expenditures to reduce future risks or increase future opportunities, 0 otherwise (Asset4 ENERDP095) |
| SpillImpactReduction_indicator | An indicator variable that equals 1 if the firm reports on initiatives to reduce, avoid or minimize the effects of spills (environmental crisis management system or disaster recovery plan), 0 otherwise (Asset4 ENERDP087) |
| Ln(StateOwn(%)) | The log of the percentage of shares held by the government (Datastream NOSHGV) |
| Ln(InstitutionalOwn(%)) | The log of the percentage of shares held by investment firms (Datastream NOSHIC) |
| Developed | An indicator variable that equals 1 if the country where the firm originated is a developed country, 0 otherwise (UNCTAD, United Nations Conference on Trade and Development) |
| FirmSize (lnTotalAssets) | The log of the total assets (Worldscope WC02999 in US$) |
| Leverage (lnDebttoEquity) | The log of the total debt to total equity ratio (Worldscope WC08231) |
| ROE (lnROE) | The log of the return on equity (Worldscope WC08301) |
| CFO (lnCFO) | The log of the cash flow from operations (Worldscope WC04860) |
| Reputation_Monitoring_indicator | An indicator variable that equals 1 if the firm monitors its reputation or its relations with communities, 0 otherwise (Asset4 SOCODP021) |
| CEO_Comp_Link_indicator | An indicator variable that equals 1 if the CEO’s compensation is linked to total shareholder return, 0 otherwise (Asset4 CGCPDP041) |
| CEO_BoardMem_indicator | An indicator variable that equals 1 if the CEO is a member of the board of directors, 0 otherwise (Asset4 CGBSDP061) |
| CG_Comm_indicator | An indicator variable that equals 1 if the firm has a corporate governance committee, 0 otherwise (Asset4 CGBFDP005) |
| CSR_Comm_indicator | An indicator variable that equals 1 if the firm has a corporate social responsibility committee, 0 otherwise (Asset4 CGVSDP005) |
| Ln(CloselyHeldShares(%)) | The log of the percentage of shares held by insiders (Worldscope WC08021) |
| The log of the weighted index computed using factor loadings of four environmental disclosure measures | |
| An indicator variable that equals 1 if the firm reports on its impact on biodiversity or on activities to reduce its impact on the native ecosystems and species, as well as the biodiversity of protected and sensitive areas, 0 otherwise (Asset4 ENERDP019) | |
| An indicator variable that equals 1 if the firm reports about its awareness on commercial risks and opportunities of climate change, 0 otherwise (Asset4 ENERDP089) | |
| An indicator variable that equals 1 if the firm reports on making proactive environmental investments or expenditures to reduce future risks or increase future opportunities, 0 otherwise (Asset4 ENERDP095) | |
| An indicator variable that equals 1 if the firm reports on initiatives to reduce, avoid or minimize the effects of spills (environmental crisis management system or disaster recovery plan), 0 otherwise (Asset4 ENERDP087) | |
| The log of the percentage of shares held by the government (Datastream NOSHGV) | |
| The log of the percentage of shares held by investment firms (Datastream NOSHIC) | |
| An indicator variable that equals 1 if the country where the firm originated is a developed country, 0 otherwise (UNCTAD, United Nations Conference on Trade and Development) | |
| The log of the total assets (Worldscope WC02999 in US$) | |
| The log of the total debt to total equity ratio (Worldscope WC08231) | |
| The log of the return on equity (Worldscope WC08301) | |
| The log of the cash flow from operations (Worldscope WC04860) | |
| An indicator variable that equals 1 if the firm monitors its reputation or its relations with communities, 0 otherwise (Asset4 SOCODP021) | |
| An indicator variable that equals 1 if the CEO’s compensation is linked to total shareholder return, 0 otherwise (Asset4 CGCPDP041) | |
| An indicator variable that equals 1 if the CEO is a member of the board of directors, 0 otherwise (Asset4 CGBSDP061) | |
| An indicator variable that equals 1 if the firm has a corporate governance committee, 0 otherwise (Asset4 CGBFDP005) | |
| An indicator variable that equals 1 if the firm has a corporate social responsibility committee, 0 otherwise (Asset4 CGVSDP005) | |
| The log of the percentage of shares held by insiders (Worldscope WC08021) |
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