Table 1 Variable definitions and measures
Variable | Measures |
|---|---|
Dependent variable | |
Cons | (C-Score) annual conditional conservatism for each firm [49, 50, 69]. See Eqs. 1,2, and 3 |
Independent variable | |
CRRD | The natural logarithm of the number of statements indicating CRRD in the narrative sections of all voluntarily environmental reports |
Moderator variable | |
EQ | The absolute value of short-term discretionary accruals, following the modified Jones model by Dechow et al. [20] |
Control variables | |
Firm size | The natural logarithm of total assets |
Leverage | Long-term debt divided by the market value of common equity at the end of the year |
MTB | The market value of equity divided by the book value of equity |
ROA | Calculated as earnings before extraordinary items divided by total assets |
Growth | Change in firm’s annual sales |
Loss | Dummy variable that equals 1 if the firm has negative annual earnings, and 0 otherwise |