DI it is the dividends recognised as a distribution to shareholders for the

Di it is the dividends recognised as a distribution

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DI i,t is the dividends recognised as a distribution to shareholders for the 2008 financial year for company i . BV i,t 2 1 is the opening book value of company i and is calculated as the difference between total assets and total liabilities 1 BV i ; t 2 1 1/BV i,t 2 1 represents the inverse of opening book value. BV i,t 2 1 is the opening book value of company i and is calculated as the difference between total assets and total liabilities BV i ; t 2 1 BV i ; t 2 1 Opening book value scaled with opening book value. BV i,t 2 1 is the opening book value of company i and is calculated as the difference between total assets and total liabilities. The variable is not included in Tables II-IV as BV i,t 2 1 /BV i,t 2 1 is equal to one for all companies NI i ; t BV i ; t 2 1 NI i,t represents current period net income after interest and tax for company i , and it is scaled with opening book value BV i,t 2 1 . BV i,t 2 1 is the opening book value of company i , and is calculated as the difference between total assets and total liabilities CRR i,t (Measure 1: CRR _ Comp ) CRR _ Comp is a measure for the level of CRR . This measure is not deflated, as it is independent of company size. The composite measure ( CRR _ Comp ) takes the following areas of the KPMG survey into account: overall environmental strategy, stakeholder engagement, corporate management systems, reporting, governance, climate change, supply chain, responsible investment, assurance, GRI guidelines used (or not used) by the company, and the GRI-level applied by the company CRR i,t (Measure 2: CRR _ GRI ) CRR _ GRI is also a measure of CRR . This measure is not deflated, as it is independent of company size. CRR _ GRI indicates whether a company refers to the use of the CRR_GRI guidelines or not. If it does, CRR _ GRI is equal to 1. If not, CRR _ GRI is equal to 0 ES i,t Used in equation (5). Represents environmentally sensitive industries. Sample companies are categorized into environmentally sensitive and not-environmentally sensitive groups based on the classification scheme used by Neu et al. (1998). The following industries are categorized as environmentally sensitive: mining, oil and gas, and chemical and forestry. Dummy variable ES is equal to 1 for environmentally sensitive companies and 0 otherwise ES i,t CRR i,t Used in equation (5). Represents the interaction between environmentally sensitive industries ES and CRR . Calculated as variable ES multiplied by the measure of CRR ( CRR _ Comp and CRR _ GRI , respectively) Table I. Summary of variables used in equations (3)-(5) Corporate responsibility reporting 29 Downloaded by UNIVERSITY OF PRETORIA At 05:42 18 June 2015 (PT)
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MV i ; t þ DI i ; t BV i ; t 2 1 ¼ b 0 1 BV i ; t 2 1 þ b 1 BV i ; t 2 1 BV i ; t 2 1 þ b 2 NI i : t BV i ; t 2 1 þ b 3 CRR i ; t þ b 4 ES i ; t þ b 5 ES i ; t CRR i ; t À Á þ 1 i ; t ð 5 Þ Variable ES is equal to 1 for environmentally sensitive companies and 0 otherwise.
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