Variables and measurement
| Variable | Label | Description |
|---|---|---|
| Investment efficiency | INVEFF | The absolute residual value of the investment model, multiplied by −1 |
| Financial reporting quality | FRQ | The absolute residual value of the accruals model, multiplied by −1 |
| Firm size | FSIZE | The natural logarithm of total assets |
| Leverage | LEV | Total debt divided by total assets |
| Firm age | FAGE | The number of years since incorporating |
| Tangibility | TANG | The property, plant and equipment divided by total assets |
| Financial slack | FSLACK | Cash and ST investments divided by total assets |
| Profitability | PROF | ROA: Net profit divided by total assets |
| Industry dummy | IND | The dummy variable for each industry |
| Country dummy | COUN | The dummy variable for each country |
| Variable | Label | Description |
|---|---|---|
| Investment efficiency | INVEFF | The absolute residual value of the investment model, multiplied by −1 |
| Financial reporting quality | FRQ | The absolute residual value of the accruals model, multiplied by −1 |
| Firm size | FSIZE | The natural logarithm of total assets |
| Leverage | LEV | Total debt divided by total assets |
| Firm age | FAGE | The number of years since incorporating |
| Tangibility | TANG | The property, plant and equipment divided by total assets |
| Financial slack | FSLACK | Cash and ST investments divided by total assets |
| Profitability | PROF | ROA: Net profit divided by total assets |
| Industry dummy | IND | The dummy variable for each industry |
| Country dummy | COUN | The dummy variable for each country |
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