Table A1 Definition of independent... | Emerald Publishing

Table A1

Definition of independent variables

Variable	Code	Definition	Expected IFRS effect	Source
Test variables:
Mandatory adopting banks	MANDATORY	1 if bank did not use IFRS until it became mandatory, and 0 otherwise	+	Chen et al., 2015; Doukakis, 2014
Pre- or post-mandatory adoption period	POST	1 for observations from 2012, and 0 otherwise	+	Chen et al., 2015; Doukakis, 2014
Interaction term	MANDATORY *POST	1 for mandatory adopting bank in the post-adoption period, and 0 otherwise	+	Chen et al., 2015; Doukakis, 2014
Control variables:
Firm-level attributes:
Profitability	ROE	Return on equity	+	Doukakis, 2014; Sarea and Al Nesuf, 2013
Liquidity	LLP	LLP per share	−	Mohammed and Lode, 2015; Onalo et al., 2014a, 2014b
Capital structure	SIZE	Bank size as natural log of market value of equity	+	Barth et al., 2008; den Besten et al., 2015; Devalle et al., 2010; Onalo et al., 2014a, 2014b; Tanko, 2012
Capital structure	LEV	Leverage as a % of fixed interest capital to total capital	−	Barth et al., 2008; den Besten et al., 2015; Tanko, 2012
Corporate governance	GOING	1 if bank’s financial report has going concern statement, and 0 otherwise	+	Beest et al., 2009; Braam and Beest, 2013; Mbobo and Ekpo, 2016
Country-level attributes
Globalisation	FDI	Foreign direct investment as a % RGDP	+	Okpala, 2012; Saidu and Dauda, 2014

Variable	Code	Definition	Expected IFRS effect	Source
Test variables:
Mandatory adopting banks	MANDATORY	1 if bank did not use IFRS until it became mandatory, and 0 otherwise	+	Chen et al., 2015; Doukakis, 2014
Pre- or post-mandatory adoption period	POST	1 for observations from 2012, and 0 otherwise	+	Chen et al., 2015; Doukakis, 2014
Interaction term	MANDATORY *POST	1 for mandatory adopting bank in the post-adoption period, and 0 otherwise	+	Chen et al., 2015; Doukakis, 2014
Control variables:
Firm-level attributes:
Profitability	ROE	Return on equity	+	Doukakis, 2014; Sarea and Al Nesuf, 2013
Liquidity	LLP	LLP per share	−	Mohammed and Lode, 2015; Onalo et al., 2014a, 2014b
Capital structure	SIZE	Bank size as natural log of market value of equity	+	Barth et al., 2008; den Besten et al., 2015; Devalle et al., 2010; Onalo et al., 2014a, 2014b; Tanko, 2012
Capital structure	LEV	Leverage as a % of fixed interest capital to total capital	−	Barth et al., 2008; den Besten et al., 2015; Tanko, 2012
Corporate governance	GOING	1 if bank’s financial report has going concern statement, and 0 otherwise	+	Beest et al., 2009; Braam and Beest, 2013; Mbobo and Ekpo, 2016
Country-level attributes
Globalisation	FDI	Foreign direct investment as a % RGDP	+	Okpala, 2012; Saidu and Dauda, 2014

Source: Authors’ compilation (2017)