Table 2 Variable measurements Variable... | Emerald Publishing

Table 2

Variable measurements

Variable	Measurement
Dependent variable
Earnings Quality	${LLP}_{i t} = α_{1} {LOAN}_{i t} + α_{3} {NPL}_{i t - 1} + α_{4} {Δ NPL}_{i t} + E_{i t}$
	${NDLLP}_{i t} = α_{1} {LOAN}_{i t} + α_{3} {NPL}_{i t - 1} + α_{4} {Δ NPL}_{i t}$
	${DLLP}_{i t} = {LLP}_{i t} - {NDLLP}_{i t}$
Independent variable
Pre-managed Earnings	$EBTP = \frac{Earning before tax and provisions}{Lagged Total Assets}$
Liquidity	$LDR = \frac{Total Loan}{Total Deposit}$
Efficiency	$BOPO = \frac{Operational Expense}{Operational Income}$
Moderator variable
CG Mechanisms	$CG = \frac{Number of Independence Commissioner}{Total number of Commissioner}$
Control variable
Bank Size	$SIZE = Log (Total Aset)$
Net Interest Margin	$NIM = \frac{Net Interest Income}{Average Earning Assets}$
Capital Adequacy Ratio	$CAR = \frac{(Tier 1 Capital + Tier 2 Capital)}{Risk Weighted Assets}$

Variable	Measurement
Dependent variable
Earnings Quality	${LLP}_{i t} = α_{1} {LOAN}_{i t} + α_{3} {NPL}_{i t - 1} + α_{4} {Δ NPL}_{i t} + E_{i t}$
	${NDLLP}_{i t} = α_{1} {LOAN}_{i t} + α_{3} {NPL}_{i t - 1} + α_{4} {Δ NPL}_{i t}$
	${DLLP}_{i t} = {LLP}_{i t} - {NDLLP}_{i t}$
Independent variable
Pre-managed Earnings	$EBTP = \frac{Earning before tax and provisions}{Lagged Total Assets}$
Liquidity	$LDR = \frac{Total Loan}{Total Deposit}$
Efficiency	$BOPO = \frac{Operational Expense}{Operational Income}$
Moderator variable
CG Mechanisms	$CG = \frac{Number of Independence Commissioner}{Total number of Commissioner}$
Control variable
Bank Size	$SIZE = Log (Total Aset)$
Net Interest Margin	$NIM = \frac{Net Interest Income}{Average Earning Assets}$
Capital Adequacy Ratio	$CAR = \frac{(Tier 1 Capital + Tier 2 Capital)}{Risk Weighted Assets}$