Table 2

Variables

VariablesDescriptionMeasureSource
Dependent Variables   
BETA5-year monthly Systematic Risk estimationRatioThomson Reuters©
VOLATILITY5-year standard deviation on daily variation rate of stock pricesStandard DeviationYahoo Finance
Independent Variables   
SERThe 5-year compound average growth rate of ESG ratingValueSustainalytics©
ENVThe 5-year compound average growth rate of environmental scoresValueSustainalytics©
SOCThe 5-year compound average growth rate of social scoresValueSustainalytics©
GOVThe 5-year compound average growth rate of governance scoresValueSustainalytics©
Control variables   
TAThe total amount of assets owned by the companiesValueMorningstar©
PECompany’s current share price relative to its per-share earningsRatioMorningstar©
EMPFull-time employees working at companies headquarter or branches within the 2018 fiscal yearValueYahoo Finance
GICS Industry SectorsIndustry taxonomy ranking all companies into 11 industrial sectors  
CDConsumer Discretionary Sector0.1GICS®
CSConsumer Staples Sector0.1GICS®
ESEnergy Sector0.1GICS®
FINFinancials Sector0.1GICS®
HCHealth Care Sector0.1GICS®
INDIndustrials Sector0.1GICS®
ITInformation Technology Sector0.1GICS®
MATMaterials Sector0.1GICS®
REReal Estate Sector0.1GICS®
TSTelecommunications Services Sector0.1GICS®
USUtilities Sector0.1GICS®
Source: Authors’ own creation

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