Table 1 Research variables: type and measures
Variables | The type of the measure | Measurements |
|---|---|---|
Independent variables | Â | Â |
Financial performance | Financial ratio | The return on assets of a company is computed by dividing the net income it generates by the average of total assets |
Financial reporting | Index | FRj = Σ Actual Score / Σ Maximum Score points Dummy variable with values 0 and 1 |
Risk management | Index | RMj =Σ Actual Score / Σ Maximum Score points Dummy variable with values 0 and 1 |
Dependent variable | Â | Â |
Climate risk disclosure | Index | CRDj = Σ Actual Score / Σ Maximum Score points Dummy variable with values 0 and 1 |
Control variables | Â | Â |
Firm size | Numeric value | Firm size is calculated using the natural logarithm of the total book value of the company's assets |
Firm value | Tobin’s Q | Tobin’s Q ratio is calculated by dividing a company's total market value by the total value of its assets |