This package contains publicly sharable data, proprietary data (for internal replication only) and Stata codes for the paper Hsu, Liang, Matos (2020) "Leviathan Inc. and Corporate Environmental Engagement", accepted for publication at Management Science. Data and Code Availability: * We have prepared the following documents: - "Codes_HsuLiangMatos_MS.do" contains the Stata codes that produce all our results in the paper; - "data_for_public_MS.dta" contains the dataset (in Stata format) that can be shared to the public as these data are not protected by Confidentiality Agreement with the data providers/vendors; - "data_proprietary_MS.dta" contains the entire dataset (in Stata format) for our main tests, with some of the data not to be shared to the public as they are protected by Confidentiality Agreement with the data providers/vendors. They are for the purpose of internal replication only; - "msci_esg.dta" contains the dataset (in Stata format) for our robustness test in Table 11, with most of the data not to be shared to the public as they are protected by Confidentiality Agreement with the data providers/vendors; - "sustainalytics.dta" contains the dataset (in Stata format) for our robustness test in Table 11, with most of the data not to be shared to the public as they are protected by Confidentiality Agreement with the data providers/vendors; - "forbes.dta" contains the dataset of Forbes Top 30 Global Companies in 2010 that is used to create Table 1 in the paper; - "Figure1_data.xlsx" contains the processed data that is used to create Figure 1 in the paper; - "Figures3&4_data.xlsx" contains the processed data that is used to create Figure 3 and Figure 4 in the paper; - "Log_file.smcl" contains the log file for running all the codes in "Codes_HsuLiangMatos_MS.do". **** Data for Public **** * The following variables are collected from sources that are publicly available; thus they can be shared to the public (included in "data_for_public_MS.dta"): - GUO_state3 : measure for our main dependent variable "State_own" - a binary variable indicating the ultimate owner of the firm is a state (Source: Orbis + authors' mannual correction based on company annual reports & websites) - government_held3a : percentage of free-floating shares held by the government as a blockholder (owning > 5% stake) (Source: Datastream) - lngdppc : The logarithm of GDP per capita of the country (Source: World Bank) - gov1_01a : A binary variable indicating that the largest government party orientation wrt economic policy changed from center/right to left (Source: Database of Political Institutions) - gov1_10a : A binary variable indicating that the largest government party orientation wrt economic policy changed from left to center/right (Source: Database of Political Institutions) - energy_dependence : International Index of Energy Security Risk by Global Energy Institute (Source: Global Energy Institution; https://www.globalenergyinstitute.org/energy-security-risk-index) - energy_dependence_hi : A binary variable indicating a country's energy_dependence index value is greater than the sample median - mktcap_gdp : market capitalisation to GDP ratio (Source: World bank) - mktcap_gdp_hi : A binary variable indicating a country's mktcap_gdp ratio is greater than the sample median - E_regulation_hi : A binary variable indicating a country's environmental regulation index is greater than the sample median (Source: Carrots & Sticks and Schiller (2018) Working Paper "Global Supply-Chain Networks and Corporate Social Responsibility") - nuclear : A binary variable indicating a firm is a nuclear company (Sourceļ¼š World Nuclear Association) - vae : Voice & Accountability (Estimate) Index from World Governance Indicators (Source: World Bank - World Governance Indicators) - pve : Political Stability and Absence of Violence/Terrorism (Estimate) Index from World Governance Indicators (Source: World Bank - World Governance Indicators) - gee : Government Effectiveness (Estimate) Index from World Governance Indicators (Source: World Bank - World Governance Indicators) - rqe : Regulatory Quality (Estimate) Index from World Governance Indicators (Source: World Bank - World Governance Indicators) - rle : Rule of Law (Estimate) Index from World Governance Indicators (Source: World Bank - World Governance Indicators) - cce : Control of Corruption (Estimate) Index from World Governance Indicators (Source: World Bank - World Governance Indicators) **** Proprietary Data (for replication only) **** * The following variables are collected from *proprietary* data sources (commercial databases subscribed by the authors' institutions); they are included in "data_proprietary_MS.dta" (NOT to be shared to the public); * Here, we provide the simple definitions of them. Interested readers are referred to the original data sources to collect them: - ENVSCORE : Overall Environmental Pillar Score from Thomson Reuters ASSET4 - ENER : Emission reduction score (a component score of ENVSCORE) from Thomson Reuters ASSET4 - ENPI : Production innovation score (a component score of ENVSCORE) from Thomson Reuters ASSET4 - ENRR : Resource Reduction score (a component score of ENVSCORE) from Thomson Reuters ASSET4 - CGVSCORE : Overall Corporate Governance Pillar Score from Thomson Reuters ASSET4 - SOCSCORE : Overall Social Pillar Score from Thomson Reuters ASSET4 - io : Total institutional ownership of a company (data from FactSet) - mktcap : total market capitalization of a firm's outstanding equity (data from Datastream/Worldscope) - leverage : debt to assets ratio of a firm (data from Datastream/Worldscope) - MTBV2 : Market-to-book ratio of a firm's total equity (item8001/item3501) (data from Datastream/Worldscope) - roa : return on assets (net income/total assets) (data from Datastream/Worldscope) - hhi48_ctry : The Herfindahl-Hirschman Index (HHI) based on Fama-French 48 industries classification for each country - ln_total_co2_a : The logarithm of firm-level total co2 emission to total assets ratio; data on total co2 emission is obtained from ASSET4 - waste_sic2_med2 : Industry-level emission intensity - we use ASSET4_SIC and TRI database to assign SIC2 industries into high and low emission - mean_ab_temp_abs_hi : A binary indicator for whether a city's absolute value of abnormal temperature (annual average) is above sample median - mean_pdsi_hi : A binary indicator of whether a country's Palmer Drought Severity Index value (annual average) is above sample median (annual average) - foreign_assets : Percentage of a firm's foreign assets over its total assets (data from Datastream/Worldscope) - foreign_sales : Percentage of a firm's foreign sales over its total sales (data from Datastream/Worldscope) - foreign_income_growth : Foreign income growth (data from Datastream/Worldscope) - retirement_age1 : A binary variable indicating whether the CEO is close to retirement age (at least 60 years old) (data from NRG Metrics and BoardEx) - Tenure : CEO's tenure in the company (data from NRG Metrics & BoardEx) - PoliticalConnection : A binary indicator for whether the CEO has any form of political connection (data from NRG Metrics and BoardEx) - government_held : The percentage of total shares in issue of holdings of 5% or more held by a government or government institution (data from Datastream/Worldscope) - foreign_holdings : The percentage of total shares in issue of holdings of 5% or more held by a foreign institution (data from Datastream/Worldscope) - cross_holdings : The percentage of total shares in issue of holdings of 5% or more held by one company in another (data from Datastream/Worldscope) - pension_fund_held : The percentage of total shares in issue of holdings of 5% or more held by pension funds or endowment funds (data from Datastream/Worldscope) - investment_co_held : The percentage of total shares in issue of holdings of 5% or more held as long term strategic holdings by investment banks (data from Datastream/Worldscope) - employee_held : The percentage of total shares in issue of 5% or more held by employees (data from Datastream/Worldscope) - strategic_holdings : The percentage of total shares in issue of 5% or more held strategically and not available to ordinary investors (data from Datastream/Worldscope) - io_dom : A firm's domestic institutional ownership (data from Factset Lionshare) - io_for : A firm's foreign institutional ownership (data from Factset Lionshare) - foreign_GUO : A binary variable indicating a firm's ultimate owner is a foreign government or government entity (data from Orbis + authors' self calculation) - swf : A binary variable indicating a firm has sovereign wealth fund ownership (data from Factset and SWFI) - trbc_code: Thomson Reuters (Refinitive) Business Classification code (data froM Datastream) * The following commands may need to be installed on Stata to run the codes and export the results as in "Codes_HsuLiangMatos_MS.do": - asdoc - winsor - carryforward - reghdfe - outreg2