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Table 3 Operationalization of variables

From: Analysis of corporate sustainability performance and corporate financial performance causal linkage in the Indian context

Variable Name Mnemonic Type Operationalization Source
CFP Return on Assets ROA Ratio Indicator of how profitable a company is relative to its total assets, in percentage calculated as (Trailing 12 M Net Income / Average Total Assets) * 100 Bloomberg
Return on Equity ROE Ratio Measure of a corporation’s profitability calculated as: (T12 Net Income Available for Common Shareholders / Average Total Common Equity) * 100 Bloomberg
Tobin’s Q TobinsQ Ratio Ratio of the market value of a firm to the replacement cost of the firm’s assets calculated as (Market Cap + Total Liabilities + Preferred Equity + Minority Interest) / Total Assets Bloomberg
CSP ESG-Score ESG Numeric Proprietary Bloomberg score ranging from 0.1 to 100 based on the extent of a company’s Environmental, Social, and Governance (ESG) disclosure. Bloomberg
E-Score E Numeric Proprietary Bloomberg score ranging from 0.1 to 100 based on the extent of a company’s environmental disclosure as part of Environmental, Social and Governance (ESG) data. Bloomberg
S-Score S Numeric Proprietary Bloomberg score ranging from 0.1 to 100 based on the extent of a company’s social disclosure as part of Environmental, Social and Governance (ESG) data. Bloomberg
G-Score G Numeric Proprietary Bloomberg score ranging from 0.1 to 100 based on the extent of a company’s governance disclosure as part of Environmental, Social and Governance (ESG) data. Bloomberg
Control Variables Firm Size Fsize Numeric Log of Market Capitalization Prowess
Sector Sector Category Sector defined on the basis of National Industry Classification 2-Digit Code Prowess
Firm Age Fage Numeric Difference between the current year from Year of incorporation Prowess
R&D Intensity R_D Ratio R&D expenditure as a % of revenue calculated as (R&D Expense / Revenue) * 100 Bloomberg
Risk Risk Numeric Volatility measure of the percentage price change of the security given a 1 % change in a representative market index. The beta value is considered as risk Prowess
ESI ESI Binary 1 for firms belonging to ESI sector and 0 otherwise based on categorization done by Central Pollution Control Board, Government of India Prowess