Table 2 Variables' definition and... | Emerald Publishing

Table 2

Variables' definition and sources

Variables	Symbol	Definition and measures	Impact on bank value	Impact on ownership	Source
Main variables
Tobin's Q	Q	(Market value of equity + book value of liability)/total assets		+/−	Cui and Mak (2002), Demsetz and Villalonga (2001), Cho (1998)
Managerial ownership	OWN	Common shares held by the insiders	+/−		Florackis et al. (2009), McConnell and Servaes (1990), Cui and Mak (2002)
Managerial ownership square	OWN²	OWN squared	+/−		McConnell and Servaes (1990), Cui and Mak (2002), Chen et al. (2003)
Bank-specific control variables
Firm size	LTA	Natural logarithm of total assets	+/−	+/−	Chen et al. (2003), Florackis et al. (2009), Rose (2005)
Return on assets	ROA	Profits divided by total assets	+		Chen et al. (2003), Doumpos et al. (2017)
Liquidity	LIQ		+/−		Cho (1998)
Market value of equity	MVE	Total market value of equity	+	−	Chen et al. (2003)
Earnings per share	EPS	Profit divided by outstanding shares of common stock			–
Financial leverage	LEV	Dividing total earning assets by total debt		–	Shan (2019)
Age of bank	AGE	Years from incorporation to present			–

Variables	Symbol	Definition and measures	Impact on bank value	Impact on ownership	Source
Main variables
Tobin's Q	Q	(Market value of equity + book value of liability)/total assets		+/−	Cui and Mak (2002), Demsetz and Villalonga (2001), Cho (1998)
Managerial ownership	OWN	Common shares held by the insiders	+/−		Florackis et al. (2009), McConnell and Servaes (1990), Cui and Mak (2002)
Managerial ownership square	OWN²	OWN squared	+/−		McConnell and Servaes (1990), Cui and Mak (2002), Chen et al. (2003)
Bank-specific control variables
Firm size	LTA	Natural logarithm of total assets	+/−	+/−	Chen et al. (2003), Florackis et al. (2009), Rose (2005)
Return on assets	ROA	Profits divided by total assets	+		Chen et al. (2003), Doumpos et al. (2017)
Liquidity	LIQ		+/−		Cho (1998)
Market value of equity	MVE	Total market value of equity	+	−	Chen et al. (2003)
Earnings per share	EPS	Profit divided by outstanding shares of common stock			–
Financial leverage	LEV	Dividing total earning assets by total debt		–	Shan (2019)
Age of bank	AGE	Years from incorporation to present			–

Source(s): own research