Table 1 Research variables Variables... | Emerald Publishing

Table 1

Research variables

Variables	Variable names	Definitions
INV_t	Corporate investment	Total capital expenditure and R&D expenditure in year t divided by total assets in year t−1
TOB_t−1	Tobin's Q	Total market value of common equity and book value of debt divided by total assets in year t−1
CI_t	Corruption index	Corruption perception index from transparency international, control of corruption index from world bank and corruption index from international country risk guide in year t
PRO_t−1	Profitability	Net income to total assets in year t−1
CAS_t−1	Cash holdings	Cash and short-term investment to total assets in year t−1
OCF_t−1	Cash flow	Operating cash flow to total assets in year t−1
LEV_t−1	Financial leverage	Total debt to total assets in year t−1
TAN_t−1	Asset tangibility	Property, plant and equipment to total assets in year t−1
SIZ_t−1	Firm size	Natural logarithm of total assets in USD in year t−1
NWC_t−1	Net working capital	Current assets minus current liabilities, cash and short-term investment divided by total assets in year t−1
DPR_t−1	Dividend payout ratio	Cash dividends to total assets in year t−1
AD	Shareholder protection	Anti-self-dealing index from Djankov et al. (2008)
CR	Creditor protection	Revised creditor right index from Djankov et al. (2007)
ID	Individualistic culture	Individualism index from Hofstede (2001)
Pcre_t	Private credit	Domestic private credit to GDP provided by world bank in year t
Mcap_t	Stock market capitalization	Stock market capitalization to GDP provided world bank in year t
Gcap_t	GDP per capita	Natural logarithm of annual GDP per capita provided by world bank in year t
Infla_t	Inflation rate	Annual inflation rate provided by world bank in year t
Rlaw	Rule of law	Rule of law index is from international country risk guide. It ranges from 0 to 10 and its higher scores imply more tradition of law and order

Variables	Variable names	Definitions
INV_t	Corporate investment	Total capital expenditure and R&D expenditure in year t divided by total assets in year t−1
TOB_t−1	Tobin's Q	Total market value of common equity and book value of debt divided by total assets in year t−1
CI_t	Corruption index	Corruption perception index from transparency international, control of corruption index from world bank and corruption index from international country risk guide in year t
PRO_t−1	Profitability	Net income to total assets in year t−1
CAS_t−1	Cash holdings	Cash and short-term investment to total assets in year t−1
OCF_t−1	Cash flow	Operating cash flow to total assets in year t−1
LEV_t−1	Financial leverage	Total debt to total assets in year t−1
TAN_t−1	Asset tangibility	Property, plant and equipment to total assets in year t−1
SIZ_t−1	Firm size	Natural logarithm of total assets in USD in year t−1
NWC_t−1	Net working capital	Current assets minus current liabilities, cash and short-term investment divided by total assets in year t−1
DPR_t−1	Dividend payout ratio	Cash dividends to total assets in year t−1
AD	Shareholder protection	Anti-self-dealing index from Djankov et al. (2008)
CR	Creditor protection	Revised creditor right index from Djankov et al. (2007)
ID	Individualistic culture	Individualism index from Hofstede (2001)
Pcre_t	Private credit	Domestic private credit to GDP provided by world bank in year t
Mcap_t	Stock market capitalization	Stock market capitalization to GDP provided world bank in year t
Gcap_t	GDP per capita	Natural logarithm of annual GDP per capita provided by world bank in year t
Infla_t	Inflation rate	Annual inflation rate provided by world bank in year t
Rlaw	Rule of law	Rule of law index is from international country risk guide. It ranges from 0 to 10 and its higher scores imply more tradition of law and order