Table A1 Variable measurements Variables... | Emerald Publishing

Table A1

Variable measurements

Variables	Denote	Definition
Dependent variables
Firm performance	EBIT/TA	EBIT (earnings before interest and tax) divided by total assets
	EBT/TA	EBT (earnings before tax) divided by total assets
	EAT/TA	EAT (earnings after tax) divided by total assets
Explanatory variables
Risk	${Risk}_{i, t}$	Standard deviation of ROA
Company growth	${Growth}_{i, t}$	Growth rates of total sales
Dividend	${Dividend}_{i, t}$	Cash dividend pay-outs over earnings after taxes
Debt	${Debt}_{i, t}$	Total liabilities/total assets
Liquidity	${Liquidity}_{i, t}$	Quick ratio (current assets – inventories)/current liabilities
Tangibility	${Tangibility}_{i, t}$	Tangible fixed assets/total assets
Overinvestment	${Overinvestment}_{i, t}$	Investment residual measured by overinvestment estimation with $ν_{i, t}$ > 0 and Hodrick–Prescott filter
Firm size	${Size}_{i, t}$	Natural logarithm of total assets

Variables	Denote	Definition
Dependent variables
Firm performance	EBIT/TA	EBIT (earnings before interest and tax) divided by total assets
	EBT/TA	EBT (earnings before tax) divided by total assets
	EAT/TA	EAT (earnings after tax) divided by total assets
Explanatory variables
Risk	${Risk}_{i, t}$	Standard deviation of ROA
Company growth	${Growth}_{i, t}$	Growth rates of total sales
Dividend	${Dividend}_{i, t}$	Cash dividend pay-outs over earnings after taxes
Debt	${Debt}_{i, t}$	Total liabilities/total assets
Liquidity	${Liquidity}_{i, t}$	Quick ratio (current assets – inventories)/current liabilities
Tangibility	${Tangibility}_{i, t}$	Tangible fixed assets/total assets
Overinvestment	${Overinvestment}_{i, t}$	Investment residual measured by overinvestment estimation with $ν_{i, t}$ > 0 and Hodrick–Prescott filter
Firm size	${Size}_{i, t}$	Natural logarithm of total assets