Variable measurement
| Variables | Measurement | Expected sign |
|---|---|---|
| Response variable | ||
| Financial performance | ||
| Return on assets (ROAs) | Profit before tax divided by total assets | |
| Return on equity (ROE) | Net profit divided total shareholders’ equity | |
| Net interest margin (NIM) | Net interest income divided by total assets | |
| Predictor variable-ICE | ||
| Modified value-added intellectual coefficient (MVAIC) | ICE=HCE + SCE + CEE + RCE | + |
| Human capital efficiency (HCE) | HCE=VA/PC | + |
| Structural capital efficiency (SCE) | SCE=(VA-PC)/VA | + |
| Capital employed efficiency (CEE) | CEE=VA/CE (Book value of equity) | + |
| Relational capital efficiency (RCE) | RCE = Advertising-Marketing/VA | + |
| Control variables | ||
| Financial leverage (Leverage) | Total liabilities divided by total assets | −/+ |
| Firm size (BusSize) | Natural log of total assets | −/+ |
| Board size (SoD) | Number of directors on the board | −/+ |
| Board gender diversity (RoWoB) | Ratio of women to men on board | −/+ |
| Operational self-sufficiency (OSS) | Total operating income divided by total operating expenses | + |
| Liquidity (LIQU) | Cash and cash equivalents to total assets | −/+ |
| GDP growth (GDPgrwth) | Measured as the annual percentage growth in gross domestic product | −/+ |
| Variables | Measurement | Expected sign |
|---|---|---|
| Financial performance | ||
| Return on assets (ROAs) | Profit before tax divided by total assets | |
| Return on equity (ROE) | Net profit divided total shareholders’ equity | |
| Net interest margin (NIM) | Net interest income divided by total assets | |
| Modified value-added intellectual coefficient (MVAIC) | ICE=HCE + SCE + CEE + RCE | + |
| Human capital efficiency (HCE) | HCE=VA/PC | + |
| Structural capital efficiency (SCE) | SCE=(VA-PC)/VA | + |
| Capital employed efficiency (CEE) | CEE=VA/CE (Book value of equity) | + |
| Relational capital efficiency (RCE) | RCE = Advertising-Marketing/VA | + |
| Financial leverage (Leverage) | Total liabilities divided by total assets | −/+ |
| Firm size (BusSize) | Natural log of total assets | −/+ |
| Board size (SoD) | Number of directors on the board | −/+ |
| Board gender diversity (RoWoB) | Ratio of women to men on board | −/+ |
| Operational self-sufficiency (OSS) | Total operating income divided by total operating expenses | + |
| Liquidity (LIQU) | Cash and cash equivalents to total assets | −/+ |
| GDP growth (GDPgrwth) | Measured as the annual percentage growth in gross domestic product | −/+ |
Source(s): Author’s own work