Table III

Measurement of independent and control variables

VariablesMeasurement
Profitability (ROA)Net income divided by the average of total assets for the year (Chithambo and Tauringana, 2014; Choi et al., 2013; Luo et al., 2013)
Growth (GRW)Current year’s revenues divided by the revenues from the previous four years (Luo et al., 2013)
Leverage (LEV)Total debt divided by total assets (Clarkson et al., 2011; Luo et al., 2013)
CEO duality (CEOD)A dichotomous scale of 1 or 0. A score of 1 when the CEO and chairman are the same person, and a score of 0 for companies with separation of power (Donnelly and Mulcahy, 2008; Qu et al., 2013)
Board composition (BCOM)Number of independent directors divided by the total number of directors on the board (Matolcsy et al., 2007)
Size (LnSIZE)Natural logarithm of total assets (Brammer and Pavelin, 2006; Zeng et al., 2012)

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