Table 2

Variables definition of KZ index

Variable nameVariable description
KCapital Stock, Measured by the property plant and equipment, net of depreciation
IFirm's investment, measured by (Kt-Kt-1)
NINet Income
DADepreciation and amortization
CFCash flow, measured by (NI + DA)
SSales
LTDLong term debt, measured by Long-term liabilities
TATotal assets
SEStockholders' equity
CLCurrent Liabilities
FCFFree Cash flow, measured by (CF + I)/S
TDTotal Debt, measured by (LTD + STD)
TETotal equity, measured by (PC + ELP + PL)
ROAThe ratio of NI to TA
OIOperational income

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