The Triangulation between Shariah Compliance, ESG Transparency, and Firm Profitability

Dependent Variables - ROAit (Return on Assets): Measures firms' operational performance (accounting-based) by the ratio of net income to total assets. - ROEit (Return on Equity): Measures firms' operational performance (accounting-based) by the ratio of net income to total equity. Independent Variables - ESGSit: Combined ESG score, ranging from 0 to 100 as a percentage, measuring the company's involvement in ESG practices. - Envsit: Environmental score, ranging from 0 to 100 as a percentage, measuring the company's involvement in environmental practices. - Socsit: Social score, ranging from 0 to 100 as a percentage, measuring the company's involvement in social practices. - Govsit: Governance score, ranging from 0 to 100 as a percentage, measuring the company's involvement in governance practices. - Leadersit: Dummy variable for ESG Leaders, where 1 represents the highest level of integration between Shariah and ESG screening (leaders), and 0 represents a lower integration of ESG screenings with other Shariah-compliant firms.

Moderating Variables - ESGS*Leadersit: Interaction of ESG Score with Dummy Variable for ESG Leaders. - Envs*Leadersit: Interaction of Environmental Score with Dummy Variable for ESG Leaders. - Socs*Leadersit: Interaction of Social Score with Dummy Variable for ESG Leaders. - Govs*Leadersit: Interaction of Governance Score with Dummy Variable for ESG Leaders. Controlling Variables - SIZEit (Firm Size): Natural logarithms of total assets. - LEVit (Financial Leverage): The ratio of total debt to equity. - LIQit (Liquidity): The ratio of total current assets to total current liabilities. - CAPEXit (Capital Expenditure): Interest expenses from operating cash flow.