Description of the variables under study
| Code | Variable name | Operationalization |
|---|---|---|
| Dependent variable | ||
| ROA | Return on assets (%) | Net income/Average total assets |
| Independent variables | ||
| SSB_INDP | Sharīʿah board independence (%) | A binary variable: 0 indicates that the Sharīʿah board member has direct or indirect relationship with the firm; l indicates otherwise |
| SSB_FM | Sharīʿah board frequency of meetings | Total number of SSB meetings during the year |
| Control variables | ||
| L_FSZ | Firm size | Natural logarithm of total assets |
| LVG | Leverage | Total liabilities/total assets |
| AGE | Firm age | The difference between the establishing date of the firm and the report date |
| IOW | Institutional investor | The ratio of shares held by institutional investors to total number of shares outstanding |
| BIG4 | Auditor type | A binary variable: 1 means the company is audited by the Big 4; 0 indicates otherwise |
| Εi | Error | |
| Code | Variable name | Operationalization |
|---|---|---|
| ROA | Return on assets (%) | Net income/Average total assets |
| SSB_INDP | Sharīʿah board independence (%) | A binary variable: |
| SSB_FM | Sharīʿah board frequency of meetings | Total number of SSB meetings during the year |
| L_FSZ | Firm size | Natural logarithm of total assets |
| LVG | Leverage | Total liabilities/total assets |
| AGE | Firm age | The difference between the establishing date of the firm and the report date |
| IOW | Institutional investor | The ratio of shares held by institutional investors to total number of shares outstanding |
| BIG4 | Auditor type | A binary variable: |
| Εi | Error | |
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