Table 1 Description of variables... | Emerald Publishing

Table 1

Description of variables

Earnings surprise	Dummy variable equal to one if reported earnings per share minus the median analyst forecast is between zero and one inclusive, and zero otherwise
$A b . d i s c . a c c .$	Abnormal discretionary accruals
$A b . p r o d . c o s t$	Abnormal production costs
$A b . d i s c . \exp .$	Abnormal decreases in discretionary expenses
$I O$	Number of shares held by institutional investors divided by the number of shares outstanding
${IO}^{2}$	IO squared
$F i r m s i z e$	Natural log of total assets
$R O A$	Total income divided by total assets
$M a r k e t t o b o o k$	The firm's market value divided by its book value
$L e v e r a g e$	Total liabilities divided by total assets
$B i g a u d i t o r$	Dummy variable equal to one if the auditor is one of the big four and zero otherwise

Source(s): Table created by authors