Table 1 Variables and the description
From: Chinese shareholders’ reaction to the disclosure of environmental violations: a CSR perspective
Type | Implication | Signal | Measurement | Expected sign |
|---|---|---|---|---|
Explained variable | Cumulated Abnormal Return | CARi | Sum of the abnormal returns in the event window | |
Explanatory Variable -External | Time Trend | Trend | Years since the event | – |
Media Attention | Media-Att | Major media attention on environmental protection. Frequency of the key words: pollution, explosion, oil spilling and waste water | + | |
Explanatory Variable -Internal | Previous Pollution Control | Pre-Pollution | Have(1) or not have (1) environmental violations from 2002 to the event date, dummy variable | – |
Previous CSR Performance | Pre-CSR | Published(1) or not published(0) CSR report in the previous year, dummy variable | + | |
Control Variables | Stock Exchange Market | Market | Shenzhen Stock Exchange(0) or Shanghai Stock Exchange(1), dummy variable | +/− |
Industry | Industry | Ordinary industry(0) or pollution industry(1), dummy variable | – | |
Size | Size | Logarithm of the total asset | + | |
Concentration of Ownership | Ownership | quadratic sum of the shareholding ratio of the top ten major shareholders | + | |
Rate on Equity | ROE | Net profit/Total Equity | + | |
Price to Earnings Ratio | PE | Net profit/Earning per share | + |