Variable definitions and acronyms
| Label | Name of variable | Explanation |
|---|---|---|
| ETR | Effective tax rate | The current tax expense divided by the pretax income for the accounting year and then multiplied by −1 |
| BTD | Book-tax difference | (Pretax income- taxable income*)/ total assets *Taxable income = current tax expense/ tax rate |
| FPBOD | Board gender diversity | The proportion of female directors to the total number of directors in the board |
| 0/1WOMAN | Board gender diversity | A binary variable is coded ‘1’ if at most One member of the corporate board is female; otherwise, ‘0’ |
| 2 / 2 + WOMEN | Board gender diversity | A binary variable coded ‘1’ if the board includes Two or more female directors, and ‘0’ otherwise |
| BLAU | Board gender diversity | 1-∑ni=1 Pi2, Pi refers to the fraction of board members in each category of a given attribute; n is the number of groups of a given trait |
| SHANNON | Board gender diversity | -∑ni=1 PiInPi, Pi refers to the fraction of board members in each group of a given attribute, n is the number of groups of a given trait, In is the natural log of each category |
| FPAC | Gender diversity in audit committee | The proportion of female directors in audit committee to the number of directors on audit committee |
| BS | Board size | The number of directors in the board |
| INDP | Independent directors | The proportion of independent directors to the total directors in the board |
| DO | Director ownership | The proportion of shares a sponsor or director holds to all shares held |
| IO | Institutional ownership | The proportion of shares held by institutions to all shares outstanding |
| FO | Foreign ownership | The proportion of shares held by foreigners to all shares outstanding |
| SAC | Audit committee size | The number of the directors in audit committee |
| ROE | Profitability | The ratio of net income to total shareholders’ equity |
| LEV | Leverage | The ratio of total debts to total assets |
| LBM | Board meeting | The natural log of the total number of meetings in a year |
| FAGE | Firm age | The natural logarithm of the number of years since a company was incorporated |
| FSIZE | Firm size | The natural logarithm of the total market value of equity |
| CSR | Corporate social responsibility expenditure | The amount of corporate social responsibility expenditure divided by net income in a year |
| BIG4 | Big 4 audit firm | A binary variable is coded as ‘1’ if the firm is audited by a Big 4 audit firm and ‘0’ otherwise |
| FDBOD | Female dummy | A binary variable coded ‘1’ if there is at least one-woman presence in boardroom and ‘0’ otherwise |
| INDGEN | Industry female representation | The average proportion of female directors across firms within the same industry and year |
| DLLP | Earnings management | The absolute residual of the estimated regression specified in equation (3) in section 7 |
| Label | Name of variable | Explanation |
|---|---|---|
| Effective tax rate | The current tax expense divided by the pretax income for the accounting year and then multiplied by −1 | |
| Book-tax difference | (Pretax income- taxable income*)/ total assets *Taxable income = current tax expense/ tax rate | |
| Board gender diversity | The proportion of female directors to the total number of directors in the board | |
| 0/1WOMAN | Board gender diversity | A binary variable is coded ‘1’ if at most One member of the corporate board is female; otherwise, ‘0’ |
| 2 / 2 + WOMEN | Board gender diversity | A binary variable coded ‘1’ if the board includes Two or more female directors, and ‘0’ otherwise |
| Board gender diversity | 1-∑ni=1 Pi2, Pi refers to the fraction of board members in each category of a given attribute; n is the number of groups of a given trait | |
| SHANNON | Board gender diversity | -∑ni=1 Pi |
| Gender diversity in audit committee | The proportion of female directors in audit committee to the number of directors on audit committee | |
| Board size | The number of directors in the board | |
| Independent directors | The proportion of independent directors to the total directors in the board | |
| Director ownership | The proportion of shares a sponsor or director holds to all shares held | |
| Institutional ownership | The proportion of shares held by institutions to all shares outstanding | |
| Foreign ownership | The proportion of shares held by foreigners to all shares outstanding | |
| Audit committee size | The number of the directors in audit committee | |
| Profitability | The ratio of net income to total shareholders’ equity | |
| Leverage | The ratio of total debts to total assets | |
| Board meeting | The natural log of the total number of meetings in a year | |
| Firm age | The natural logarithm of the number of years since a company was incorporated | |
| Firm size | The natural logarithm of the total market value of equity | |
| Corporate social responsibility expenditure | The amount of corporate social responsibility expenditure divided by net income in a year | |
| BIG4 | Big 4 audit firm | A binary variable is coded as ‘1’ if the firm is audited by a Big 4 audit firm and ‘0’ otherwise |
| Female dummy | A binary variable coded ‘1’ if there is at least one-woman presence in boardroom and ‘0’ otherwise | |
| Industry female representation | The average proportion of female directors across firms within the same industry and year | |
| Earnings management | The absolute residual of the estimated regression specified in equation (3) in section 7 |
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