Table 1 Summary of variables and measurement
Variable category | Variable name | Abbreviation | Measurement |
|---|---|---|---|
Dependent variable | Altman Z″-score | Z | 6.56 (Working capital/Total Assets) + 3.26 (Retained earnings/Total Assets) + 6.72 (Earnings Before Interest and Taxation/Total Assets) + 1.05 (Book Value of Equity/Book Value of Total Liabilities), and a constant coefficient of 3.25 for the firms that belong to emerging markets |
Main variables | Environmental pillar score | ENV | Thomson Reuters score for environmental disclosure |
Social pillar score | SOC | Thomson Reuters score for social disclosure | |
Governance pillar score | GOV | Thomson Reuters score for governance disclosure | |
Control variables | Leverage | LEV | Total liabilities to Total assets |
Liquidity | LIQ | Current Assets to Current Liabilities | |
Profitability | PROF | Net income/Operating revenues | |
Firm size | SIZE | Total assets | |
Moderating role | Asian-pacific airlines | AS | Dummy variable, where being Asian-pacific airlines = 1 and non-Asian-pacific airlines = 0 |