Table 1 Variables used in the study No.... | Emerald Publishing

Table 1

Variables used in the study

No.	Variable	Abbreviation	Measures
1	Profitability	ROA	$\frac{{E B I T}_{t}}{{T o t a l a s s e t s}_{t}}$
1	Profitability	ROE	$\frac{{N e t p r o f i t}_{t}}{{E q u i t y}_{t}}$
2	Working capital management	CCC	$(\frac{{a v e r a g e i n v e n t o r y}_{t}}{s {a l e s r e v e n u e}_{t}} + \frac{{a v e r a g e r e c e i v a b l e s}_{t}}{s {a l e s r e v e n u e}_{t}} - \frac{{a v e r a g e c u r r e n t l i a b i l i t i e s}_{t}}{s {a l e s r e v e n u e}_{t}}) \times 365$
2	Working capital management	WC	$\frac{{{C u r r e n t a s s e t s}_{t} - c u r r e n t l i a b i l i t i e s}_{t}}{{S a l e s r e v e n u e}_{t}}$
3	Financial flexibility	FF	${E C}_{t} + {D C}_{t}$ $w h e r e : {E C}_{t} = {C a s h}_{t} - {M e d_C a s h}_{t - 1}$ – excess cash ${D C}_{t} = {{M e d_D R}_{t - 1} - D R}_{t}$ – debt capacity
3	Financial flexibility	FF1	0 when ${F F}_{t} \leq 0$ 1 when ${F F}_{t} > 0$
4	Cash flow proxy	CF	$\frac{n e t p r o f i t + d e p r e c i a t i o n a n d a m o r t i z a t i o n}{t o t a l a s s e t s}$
5	Growth opportunities	GROW	$\frac{Δ s a l e s r e v e n u e}{s a l e s r e v e n u e}$
6	Size of the enterprise	SIZE	$\ln (t o t a l s a l e s r e v e n u e)$
12	Annual growth of GDP	GDP_GROW	$\frac{G D P g r o w t h (a n n u a l %)}{100}$

Source(s): Own elaboration