Finn-Will-Project

This repository contains all code for the Finn-Will project. Data and other relevant project files are stored in the Dropbox folder.

See Data Files and Relevant Measures and Scripts sections below for relevant information. Please edit these sections alongside any significant updates.

Data Files and Relevant Measures

1. IndependentVariables_07232024.csv

• Description:
  • Panel data for all firms in BoardEx/Compustat, including [X] observations and [Y] unique firms (Finn, please check/correct the description of the sample here).
• ID Variables:
  • gvkey
  • cusip
• Key Measures:
  • CSO: A binary variable taking the value 1 for all years after the firm first appointed a CSO and zero otherwise. BoardEx
  • CSO_Year: The year of the first CSO appointment and NA if no appointment happened until the end of the sample. BoardEx
  • ESG_Committee: A binary variable taking the value 1 for all years after the firm first had an ESG committee and zero otherwise. BoardEx
  • ESG_Committee_Year: The year of the first ESG_Committee and NA if no committee existed until the end of the sample. BoardEx
  • ESG_Incentives: A binary variable indicating whether the firm has an ESG-related compensation policy. Thomson/Refinitiv ESG (Asset4)
  • SupplierESGTraining: A binary variable indicating whether the firm provides training in environmental, social, or governance factors for its suppliers. Thomson/Refinitiv ESG (Asset4)

2. data_essay2_robustness_v2.rds

• Description:
  • Panel data for a subset of firms in rrpanel_comp_fs_fortune_cdp.rds. This unbalanced panel contains 12616 firm-year observations from 2007 to 2020, including 124 CDP CDP members and 1094 CEM matched control firms.
• ID Variables:
  • gvkey (Compustat)
  • cusip (Compustat)
  • isin (Compustat)
  • conm (Compustat)
  • reprisk_id (RepRisk)
  • primary_isin (RepRisk)
  • all_isins (RepRisk)
  • primary_cusip (RepRisk)
  • name (RepRisk)
• Key Measures:
  • total_incident_count: Annual number of reported environmental supply chain incidents. (RepRisk)
  • annual_rri: Aggregate reputation risk index measure, including all ESG categories. (RepRisk)
  • cdp_sc_member: Indicates whether firm was a CDP SCP member in a given year. (CDP SCP Annual Reports)
• Other Relevant Measures:
  • at_usd: Total assets (USD). (Compustat)
  • roa: Return on assets. (Compustat)

3. rrpanel_comp_fs_fortune_cdp.rds

• Description:
  • Panel data for population of firms in RepRisk and Compustat. This unbalanced panel contains 171323 firm-year observations from 2007 to 2020, including 14640 unique firms.
• ID Variables:
  • Same as 2. data_essay2_robustness_v2.rds.
• Key Measures:
  • Same as 2. data_essay2_robustness_v2.rds.
• Other Relevant Measures:
  • Same as 2. data_essay2_robustness_v2.rds.

4. supplier_years_4.rds

• Description:
  • Panel data for suppliers (defined as firms with >0 customer_count: # of buyer relationships in FactSet SC data) in RepRisk and Compustat. This unbalanced panel contains 52038 firm-year observations from 2007 to 2020, including 7891 unique firms.
• ID Variables:
  • Same as 2. data_essay2_robustness_v2.rds.
• Key Measures:
  • supplier_total_incidents: annual number of environmental supply chain incidents at the firm(supplier)-level. (RepRisk)
  • scope1: Scope 1 carbon emissions. (Bloomberg ESG)
  • scope2: Scope 2 carbon emissions. (Bloomberg ESG)
  • See also 2. data_essay2_robustness_v2.rds.
• Other Relevant Measures:
  • Same as 2. data_essay2_robustness_v2.rds.

Scripts

1. Preliminary Data Cleaning.R

• Description:
  • This script adds data from IndependentVariables_07232024.csv to the data_essay2_robustness_v2.rds panel and runs several regressions.