Table 5

Description of variables used in the analysis

VariablesDescription
ROAIt is an accounting profitability ratio largely used to assess how a company efficiently manages its assets to generate earnings
ENV_ScoreIt measures the company's impacts on ecosystems, reflecting how well a company uses management practices minimizing environmental risks and generating long-term stakeholder value
SOC_ScoreIt reflects a company's capacity to generate trust and loyalty with its stakeholders implementing best management practices
CGV_ScoreIt assesses how management and governance systems act in the best interests of long-term stakeholders' expectations
ProductResp._ScoreIt reflects a company's capacity to produce quality goods and services integrating the customer's health and safety, integrity, and data privacy
CSRStrategy_ScoreIt estimates how companies integrate both the financial and ESG factors into their decision-making processes
EnvInnovation_ScoreIt assesses the corporate capacity to reduce the environmental costs and burdens, creating new market opportunities through innovative technologies and processes or eco-designed products
Management_ScoreIt measures the commitment and effectiveness of the company to following best sustainability practices and good corporate governance principles
ResourceUse_ScoreIt reflects the corporate performance and capacity to reduce the resources use and to find more eco-efficient solutions in production and supply chain management processes
Overhead_RatioIt evaluates the operating costs of doing business compared to the company's revenues, and those slack resources that have already been absorbed as excess costs (Bourgeois and Singh, 1983)
CahsFlowSales_RatioIt measures the corporate capacity to generate cash flow from its sales volume, and the company's attitude to generate operational slack resources suitable to the business development (Bourgeois and Singh, 1983)
Quick_RatioThis liquidity ratio measures those current assets available to cover current liabilities, as well as the company's capacity to produce financial available slack resources to implement business activities (Bourgeois and Singh, 1983)
lnTATotal assets is an accounting-based firms' size measure computed in the logarithmic form to normalize data

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