Table A1.

Variable definitions

VariableDefinitionSource
CSR_policyBased on average of ten questions concerning CSR policy*Eikon (2015–2019)
FrameworkBased on average of nine potential CSR pronouncements (frameworks/standards/guidelines)GRI database (2015–2019)
Foreign_salesRatio of foreign sales to total salesWorldscope (2015–2019)
LevLong-term debt divided by total assetsCompustat and Bloomberg (2015–2019)
ProfitNet income divided by total assetsCompustat and Bloomberg (2015–2019)
SizeNatural log of average net assetsCompustat and Bloomberg (2015–2019)
MTBThe ratio of market value of equity, measured as shares outstanding multiplied by share price at year-end, to book value of total equityCompustat, Bloomberg and Worldscope (2015–2019)
AnalystsNatural log of analysts following the firmIbes (2015–2019)
AC_independenceRatio of non-executive director in audit committeeEikon (2015–2019)
SH_rightIndicator variable equal to 1 if a company has shareholder rights, otherwise 0Eikon (2015–2019)
CSR_committeeIndicator variable equal to 1 if a company has CSR committee, otherwise 0Eikon (2015–2019)
AwardsIndicator variable equal to 1 if a company receives awards on CSR reporting, otherwise 0Eikon (2015–2019)
DiversityBoard gender diversity measure using percentage of female directors on the boardEikon (2015–2019)
InstitutionAverage of six dimensions of worldwide governance indicators: voice and accountability, political stability and absence of violence/terrorism, government effectiveness, regulatory quality, rule of law and control of corruptionWorld Bank (2015–2019)
GDPNatural logarithm of GDP per capita in US$World Bank (2015–2019)
CivilIndicator variable equal to 1 if a country has civil law base, otherwise 0World Bank (2015–2019)
Indcoun_frameworkAverage score of FRAMEWORK by industry and countryGRI database (2015–2019)
Yearcoun_frameworkAverage score of FRAMEWORK by year and countryGRI database (2015–2019)
ENVLevel of environmental quality and country-average score is calculatedEikon (2015–2019)

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