Table 2.

Variables definition

Dependent variableMeasurement
f_errorForecast error, measured as the difference between earnings per share forecast and earnings per share actual scaled by share price at the end of the fiscal year
Independent Variables
IR_releaseDummy variable equal to 1 if the company publishes the IR; and 0 otherwise
Cluster1Dummy variable equal to 1 if the company is located in one of the countries belonging to Cluster 1 (namely, France, Hong Kong, Japan, the United Kingdom and the USA); and 0 otherwise
Cluster2Dummy variable equal to 1 if the company is located in one of the countries belonging to Cluster 2 (namely, Australia, Canada, Denmark, Germany, Luxembourg, The Netherlands, New Zealand and Switzerland); and 0 otherwise
Cluster3Dummy variable equal to 1 if the company is located in one of the countries belonging to Cluster 3 (namely, Brazil, China, Greece, Italy, Namibia, Republic of South Korea and Sri Lanka); and 0 otherwise
IR_release_Cluster1Interaction between IR_release and Cluster1
IR_release_Cluster2Interaction between IR_release and Cluster2
IR_release_Cluster3Interaction between IR_release and Cluster3
Firm-level financial controls
ln_nanaNatural logarithm of the number of analysts following each company each year
l_eps_stNatural logarithm of the earnings per share standard deviation
LevLeverage is the ratio of total debt to the sum of total debt and the book value of common shareholders’ equity
ROAEBIT/total assets ratio
Firm-level disclosure controls
CSR_reportDummy variable equal to 1 if the company issues a standalone CSR/sustainability report, and 0 otherwise
ESG_envESG disclosure indicator section environment
ESG_govESG disclosure indicator section governance
ESG_socESG disclosure indicator section social
IFRS Dummy variable equal to 1 if the company issues the annual report according to the IFRS; 0 otherwise
IR_firstDummy variable equal to 1 if the company in that year release the IR for the first time
NaicsDummy variable equal to 1 for sensitive industries (mining, manufacturing and trade), and 0 otherwise
Firm-level corporate governance controls
BoardSizeNumber of the board’s members
WProportion of women on board of directors
NonexProportion of non-executive board members sitting in the board
ControlledDummy variable equal to 1 if the company is controlled by a concentrated ownership
Variables used for endogeneity test
antiselfMeasure of the investor protection (Djankov et al., 2003)
ESG_linked_bonusDummy variable equal to 1 if the management receives a bonus based on ESG indicators
SizeNatural logarithm of the total assets
DiscMeasure of the level of disclosure requirements in security offerings (La Porta et al., 2006)

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