Table 2

Variable definitions

VariableDefinition
Dependent variable
ZSCRFirm that experiences economic issues such as failure, financial distress, default, and financial difficulties measured using Altman Z-Score Altman et al. (2019) 
Independent variables
PC-SBPercentage of board of commissioners with political connections for company i in year t. Joni et al. (2020a) 
RGYMDummy variable for presidential leadership of SBY and Jokowi Ullah and Kamal (2022) 
Control variables
BCZEThe number of board members Joni et al. (2020a) 
FAGEThe age of the company Joni et al. (2020a) 
FSIZThe natural logarithm of total assets of company i in year t Joni et al. (2020a) 
LVRGThe ratio of total liabilities to total equity of company i in year t Joni et al. (2020a) 
SOEState-Owned Enterprise measured by a dummy variable, 1 for SOE companies, and 0 for non-SOE companies Joni et al. (2020a) 
INDYIndustry as indicator variables classified using the Global Industry Classification Standard (GICS)
YIRYear as indicator variables for the company in 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021, 2022

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