Table 1. Variables definitions Dependent... | Emerald Publishing

Table 1.

Variables definitions

Dependent variables	Description
Tobin’s Q	Tobin’s Q is computed as the natural logarithm of the Market-to-Assets ratio. The MTA ratio is obtained as (total assets - book value of equity + market capitalization on December 31st of the fiscal year) divided by total assets. Source: LSEG Worldscope
Total risk (TR)	Annualized standard deviation in current year t of daily stock returns for firm i. Source: Refinitiv LSEG datastream
Idiosyncratic risk (IR)	Annualized standard deviation of Fama-French five-factor model’s residuals in current year t using monthly excess returns for firm i. Source: Refinitiv Datastream and Kenneth R. French Data library (link to mba tuck dartmouthLink to the cited article)
Independent variables
ESG score	The overall company ESG score measures the company’s performance on environmental, social and corporate governance pillars. Source: LSEG ESG
ESG controversy score	ESG controversies category score measures a company’s exposure to environmental, social and governance controversies and negative events reflected in global media. Source: LSEG ESG
Controversy	Dummy variable equal to 1 if firm i is involved in a ESG controversy; 0 otherwise. Source: LSEG ESG
Moderating variables
ESG score x controversy	Interaction between the overall company ESG score and the controversy dummy variable. Source: LSEG ESG
ESG Score x ESG Controversy Severity (1–5)	Interaction between the overall company ESG score and five dummy variables for quintile value of ESG Controversy Score. 1: lower severity – 5: higher severity
Control variables
ROA	Return on assets ratio computed as the net income divided by the total assets. Source: LSEG worldscope
Age	Natural logarithm of the current age of firm i in year t of observation. Current age is computed as the difference between the firm’s i year of incorporation and year t. Source: LSEG worldscope and bureau van dijk.
Size	Natural logarithm of total assets. Source: LSEG worldscope.
Leverage	Ratio computed as total liabilities divided by total assets. Source: LSEG worldscope
Capex	Ratio computed as capital expenditures divided by total assets. Source: LSEG worldscope
Asset growth	Ratio computed as the difference of total assets at year t and t - 1 divided by total assets at year t - 1. Source: LSEG Worldscope
GDP growth	Annual percentage growth rate of GDP at market prices based on constant local currency. Aggregates are based on constant 2010U.S. dollars. Source: World Bank national accounts data

Dependent variables	Description
Tobin’s Q	Tobin’s Q is computed as the natural logarithm of the Market-to-Assets ratio. The MTA ratio is obtained as (total assets - book value of equity + market capitalization on December 31st of the fiscal year) divided by total assets. Source: LSEG Worldscope
Total risk (TR)	Annualized standard deviation in current year t of daily stock returns for firm i. Source: Refinitiv LSEG datastream
Idiosyncratic risk (IR)	Annualized standard deviation of Fama-French five-factor model’s residuals in current year t using monthly excess returns for firm i. Source: Refinitiv Datastream and Kenneth R. French Data library (Link to the cited article)
Independent variables
ESG score	The overall company ESG score measures the company’s performance on environmental, social and corporate governance pillars. Source: LSEG ESG
ESG controversy score	ESG controversies category score measures a company’s exposure to environmental, social and governance controversies and negative events reflected in global media. Source: LSEG ESG
Controversy	Dummy variable equal to 1 if firm i is involved in a ESG controversy; 0 otherwise. Source: LSEG ESG
Moderating variables
ESG score x controversy	Interaction between the overall company ESG score and the controversy dummy variable. Source: LSEG ESG
ESG Score x ESG Controversy Severity (1–5)	Interaction between the overall company ESG score and five dummy variables for quintile value of ESG Controversy Score. 1: lower severity – 5: higher severity
Control variables
ROA	Return on assets ratio computed as the net income divided by the total assets. Source: LSEG worldscope
Age	Natural logarithm of the current age of firm i in year t of observation. Current age is computed as the difference between the firm’s i year of incorporation and year t. Source: LSEG worldscope and bureau van dijk.
Size	Natural logarithm of total assets. Source: LSEG worldscope.
Leverage	Ratio computed as total liabilities divided by total assets. Source: LSEG worldscope
Capex	Ratio computed as capital expenditures divided by total assets. Source: LSEG worldscope
Asset growth	Ratio computed as the difference of total assets at year t and t - 1 divided by total assets at year t - 1. Source: LSEG Worldscope
GDP growth	Annual percentage growth rate of GDP at market prices based on constant local currency. Aggregates are based on constant 2010U.S. dollars. Source: World Bank national accounts data

Source(s): Authors’ own work