Description of variables
| Variable type | Variable | Measurement | Measure of | Source |
|---|---|---|---|---|
| Dependent variable | ENVP | Environmental performance pillar score | Environmental performance | Refinitiv Eikon |
| Independent variables | IBD | Number of independent directors divided to the number of directors on the board | Diversity of the board | Corporate governance reports |
| NCD | A dummy variable that coded 1 if the CEO is not also the chairperson of the board of directors | Diversity of the board | Corporate governance reports | |
| WBD | Ratio of female director to total number of directors | Diversity on the board | Corporate governance reports | |
| FBD | Ratio of family directors to total number of directors | Diversity on the board | Corporate governance reports | |
| Moderator | BT | Average board tenure | Diversity of the board | Refinitiv Eikon |
| Control variables | BS | Number of board members | Other board structure characteristic | Corporate governance reports |
| FCEO | A dummy variable coded 1 when the CEO belongs to a family that owns at least 20% of the firm's common shares | Family influence | Corporate governance reports, companies websites | |
| FOWN | Sum of the controlling family's equity stakes (%) | Family influence and capital structure | ORBIS, Consob website | |
| ID | A dummy variable coded 1 when the name of the family or controlling shareholders appears in the company name | Family/controlling shareholder's identification with the firm | Hand-collected from companies websites | |
| CEOAGE | Age of the CEO in years | CEO characteristic | ORBIS, companies websites | |
| CEOB | A dummy variable coded 1 when the CEO is a member of the board | CEO characteristic | Corporate governance reports, companies websites | |
| LEV | Ratio of total financial debt divided by equity | Capital structure | ORBIS | |
| SIZE | Log of total assets | Firm's visibility | ORBIS | |
| AGE | Age of the firm in years | Firm's visibility | ORBIS | |
| ROE | Return on equity, ratio of operating income divided by equity | Profitability | ORBIS |
| Variable type | Variable | Measurement | Measure of | Source |
|---|---|---|---|---|
| Dependent variable | ENVP | Environmental performance pillar score | Environmental performance | Refinitiv Eikon |
| Independent variables | IBD | Number of independent directors divided to the number of directors on the board | Diversity of the board | Corporate governance reports |
| NCD | A dummy variable that coded 1 if the CEO is not also the chairperson of the board of directors | Diversity of the board | Corporate governance reports | |
| WBD | Ratio of female director to total number of directors | Diversity on the board | Corporate governance reports | |
| FBD | Ratio of family directors to total number of directors | Diversity on the board | Corporate governance reports | |
| Moderator | BT | Average board tenure | Diversity of the board | Refinitiv Eikon |
| Control variables | BS | Number of board members | Other board structure characteristic | Corporate governance reports |
| FCEO | A dummy variable coded 1 when the CEO belongs to a family that owns at least 20% of the firm's common shares | Family influence | Corporate governance reports, companies websites | |
| FOWN | Sum of the controlling family's equity stakes (%) | Family influence and capital structure | ORBIS, Consob website | |
| ID | A dummy variable coded 1 when the name of the family or controlling shareholders appears in the company name | Family/controlling shareholder's identification with the firm | Hand-collected from companies websites | |
| CEOAGE | Age of the CEO in years | CEO characteristic | ORBIS, companies websites | |
| CEOB | A dummy variable coded 1 when the CEO is a member of the board | CEO characteristic | Corporate governance reports, companies websites | |
| LEV | Ratio of total financial debt divided by equity | Capital structure | ORBIS | |
| SIZE | Log of total assets | Firm's visibility | ORBIS | |
| AGE | Age of the firm in years | Firm's visibility | ORBIS | |
| ROE | Return on equity, ratio of operating income divided by equity | Profitability | ORBIS |
Source(s): Authors own creation