Variable definitions
| Variable name | Definition |
|---|---|
| Salesgrowth | Segment sales minus segment sales of previous year, divided by the previous year’s segment sales |
| Cashflows | The ratio of segment operating income before depreciation to segment total assets |
| Size | The logarithm of segment total assets |
| Investment | Segment capital expenditure divided by total assets |
| IndustryQ | Average Tobin’s Q of all firms in an industry based on four-digit-SIC (Tobin’s Q is The ratio of market value of total assets to the book value of total assets, where market value of total assets is the sum of book value of total assets and the market value of equity less the book value of equity) |
| Conglomerate | A dummy variable that identifies firms with more than one segment with positive sales and assets in more than one four-digit-SIC industries |
| Post2001 | A dummy variable indicating years from 2001 onward |
| NTRgap | Non-NTR rate – NTR rate |
| Variable name | Definition |
|---|---|
| Salesgrowth | Segment sales minus segment sales of previous year, divided by the previous year’s segment sales |
| Cashflows | The ratio of segment operating income before depreciation to segment total assets |
| Size | The logarithm of segment total assets |
| Investment | Segment capital expenditure divided by total assets |
| IndustryQ | Average Tobin’s Q of all firms in an industry based on four-digit-SIC |
| Conglomerate | A dummy variable that identifies firms with more than one segment with positive sales and assets in more than one four-digit-SIC industries |
| Post2001 | A dummy variable indicating years from 2001 onward |
| NTRgap | Non-NTR rate – NTR rate |
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