“…In each case, changes in adjusted CSR and CSiR measures are denoted as ∆CSR i,t and ∆CSiR i,t . Following past studies [36,64], this study accounts for observable heterogeneity with many control variables found to influence firm performance, including change in ∆LnSize i,t (the logarithm of total assets) [13,52], change in ∆Leverage i,t (total debt to common equity ratio; D/E ratio) [20,52], change in ∆Profit i,t [36] (operating income divided by total assets), change in ∆Liquidity i,t (current ratio, as calculated by dividing book value of current assets by debt in current liabilities) [13,14], changes in ∆Turnover i,t (dividing the total number of shares traded over month t by the number of shares outstanding for the period) [65], change in ∆Idiosy i,t (the standard deviation of the residuals from the fitted market models, estimated by the rolling regression with period t − 1 and including the past 36 months of returns) [30] and the lagged dependent variable (∆Performance i,t ) [66] to control for the potential lagged effect of stock performance changes. Moreover, we include the industry dummies (based on all four-digit Standard Industrial Classification (SIC) code industries) and monthly time dummies to account for unobserved heterogeneity across industries and time, respectively.…”