| Variable | Definition | Source |
| EnvInnovScore | The Environmental Innovation Score from the Refinitiv database. | Refinitiv |
| EnvInnov | An indicator variable that takes the value of 1 if a firm’s Environmental Innovation Score is positive and zero otherwise. | Refinitiv |
| HHI | Herfindahl-Hirschman Index of sales classified using the 3-letter SIC code and multiplied by −1. Higher scores indicate higher market competition. | Compustat |
| Top4 | The % of total sales of the top 4 firms in the industry, classified using the 3-letter SIC code and multiplied by −1. Higher scores indicate higher market competition. | Compustat
|
| ROA | EBITDA divided by total assets | Compustat |
| Size | The natural logarithm of total assets | Compustat |
| Tangibility | Fixed assets to total assets | Compustat |
| Growth | Sales growth from year t − 1 to year t | Compustat |
| Leverage | The book value of short- and long-term liabilities dividend by the sum of the book value of equity plus the book value of short- and long-term liabilities. | Compustat |
| Capex | Capital expenditures to total assets | Compustat |
| Cash | Cash and cash equivalents to total assets | Compustat |
| NWC | Current assets minus current liabilities to total assets | Compustat |