Table 1 Overview of research variables and how to measure them.
Variables | Acronym | Method of measurement | Data source |
|---|---|---|---|
Return on Assets | ROA | Net Income/Total Assets | The firms’ annual reports and the macrotrends database |
Price-To Book Ratio | PtoB | Stock Price/ book value per share | |
Total biodiversity and extinction disclosure score | BIODIS | All 51 items have a score ranging from 0 to 3, where a score of (0) if the item does not disclosure at all in the annual report, a score of (1) if the item appears in minimum, fuzzy and/or general, and a score of (2) if the item appears to include objective, present actual data and verifiable disclosure form, and A score of (3) if the item appears including all the ingredients of score of (2). In addition to providing specific information on the operating sites used and/or the species affected and/or the number of plants/animals affected; biodiversity-related data to corporate strategy, company operational and strategic goals | Sustainability Reports |
Firm size | FirmsizeLog | the logarithm of total assets | Annual Report and Financial Statements |
Financial leverage | LEV | Total debt/total assets | |
Industry sector | IndsSector | The firm gets a value of “1” if it belongs to an industry sector that is classified under a high-risk area red/amber and the firm gets a value of “0” if it belongs to an industry sector classified under a low-risk green zone ( F&C,2004) | F&C BIODIVERSITY Report A-W-G |
Country | Country | takes 1 if the country is classified as developed, “0” if it is classified as developing | The United Nations Website |
Big four Accounting Firms | Big4 | The firm gets a value of “1” when a firm got assured by Big 4, and “0” otherwise | Annual reports of firms |