Table 1 Measurement of variables
From: ESG in the boardroom: evidence from the Malaysian market
Name of variable | Measurement | Sources |
|---|---|---|
Independent variables | ||
Percentage of independent directors on board | The percentage of independent directors divided by the total number of board members | Haniffa & Cooke, 2005; Herda et al., 2012; Birindelli et al., 2018 |
Percentage of women on board | The number of women directors on the board divided by the total number of board members | Rao et al., 2012; Alazzani et al., 2019; Birindelli et al., 2018 |
Number of board meetings | Number of board meetings per year | |
Control variables | ||
Firm size (LOG Firm Size) | Natural log of the firm’s total assets | Dienes & Velte, 2016 |
Profitability (ROA) | Firm’s net income divided by the value of its total assets | M. Jizi et al. 2014 |
Leverage (Leverage) | Firm’s total debt divided by its total shareholders’ equity | Herda et al., 2012 |
Dependent variables | ||
Environmental Disclosure score; Social Disclosure score; Governance Disclosure score, and composite ESG Disclosure scores | A proprietary score Bloomberg developed based on the extent of a company’s environmental, social, and governance (ESG) disclosure individually and as a composite score | Tamimi & Sebastianelli, 2017 |