Table A1. Variable definitions Variable... | Emerald Publishing

Table A1.

Variable definitions

Variable	Definition
Dependent variables
FVTOCI	Is a binary variable that equals one if any of firm i’s EFA is classified as FVTOCI in year t, and zero otherwise
Price	Is the share price of a firm i three months after its balance date in year t
Independent variables
EFAamt	Is the EFA amount balance at fiscal year-end deflated by total assets
EFAeffect	Is the EFA effect on net income, calculated as the absolute value of a ratio that is any FVGL on EFAs divided by net income for firm i in year t
EFAmeas	Is a binary variable that equals one if firm i applies a Level 3 fair value hierarchy to any of its EFA measurement in year t, and zero otherwise.
LEV	Is total liabilities scaled by total assets
CEOCOMP	Is the rate of CEO compensation variable portions (including cash bonus and equity award) to total compensation
LogTA	Is the natural logarithm of total assets
ROEadj	Is return on equity that excludes any FVGL effect on EFAs
ACIND	Is the percentage of independent directors on the audit committee
BIG4	Is a binary variable that equals one if a firm i is audited by Deloitte, Ernst and Young, KPMG or PwC in year t and zero otherwise
ANALYST	Is the number of sell-side analysts covering the security
BVE_S	Is book value of equity scaled by outstanding shares
AmtEFA_S	Is the EFA amount balance at fiscal year-end scaled by outstanding shares
CI_S	Is total comprehensive income scaled by outstanding shares
PLEFA_S	Is the effect of FVGL for EFAs on profit or loss scaled by outstanding shares
OCIEFA_S	Is the effect of FVGL for EFAs on OCI scaled by outstanding shares

Variable	Definition
Dependent variables
FVTOCI	Is a binary variable that equals one if any of firm i’s EFA is classified as FVTOCI in year t, and zero otherwise
Price	Is the share price of a firm i three months after its balance date in year t
Independent variables
EFAamt	Is the EFA amount balance at fiscal year-end deflated by total assets
EFAeffect	Is the EFA effect on net income, calculated as the absolute value of a ratio that is any FVGL on EFAs divided by net income for firm i in year t
EFAmeas	Is a binary variable that equals one if firm i applies a Level 3 fair value hierarchy to any of its EFA measurement in year t, and zero otherwise.
LEV	Is total liabilities scaled by total assets
CEOCOMP	Is the rate of CEO compensation variable portions (including cash bonus and equity award) to total compensation
LogTA	Is the natural logarithm of total assets
ROEadj	Is return on equity that excludes any FVGL effect on EFAs
ACIND	Is the percentage of independent directors on the audit committee
BIG4	Is a binary variable that equals one if a firm i is audited by Deloitte, Ernst and Young, KPMG or PwC in year t and zero otherwise
ANALYST	Is the number of sell-side analysts covering the security
BVE_S	Is book value of equity scaled by outstanding shares
AmtEFA_S	Is the EFA amount balance at fiscal year-end scaled by outstanding shares
CI_S	Is total comprehensive income scaled by outstanding shares
PLEFA_S	Is the effect of FVGL for EFAs on profit or loss scaled by outstanding shares
OCIEFA_S	Is the effect of FVGL for EFAs on OCI scaled by outstanding shares

Source(s): Table by authors