Table 2 Variables used in the study No... | Emerald Publishing

Table 2

Variables used in the study

No	Variable	Abbreviation	Measures
1	Capital structure (total debt ratio)	DR	$\frac{t o t a l d e b t}{t o t a l a s s e t s}$
2	Assets structure (tangibility)	TANG	$\frac{f i x e d a s s e t s}{t o t a l a s s e t s}$
3	Size of the enterprise	SIZE	$ln (t o t a l a s s e t s)$
4	Growth opportunities	GROW	$\frac{Δ s a l e s r e v e n u e}{s a l e s r e v e n u e}$
5	Profitability	PROF	$\frac{E B I T}{t o t a l a s s e t s}$
6	Liquidity	LIQ	$\frac{c u r r e n t a s s e t s}{s h o r t - t e r m l i a b i l i t i e s}$
7	Nondebt tax shield	NDTS	$\frac{d e p r e c i a t i o n}{t o t a l a s s e t s}$
8	Debt capacity	DC	1	$D R_{t}$ for particular enterprise is lower than the median of debt ratio in industry (⁠ $I N D_D R_{t - 1})$ over a minimum of three years
8	Debt capacity	DC	0	Other cases
9	Threshold value for debt capacity	IND_DR	Median of debt ratio in particular country and industry
9	Systematic business risk in industry	IND_Beta	$\frac{\sum_{i = 1}^{n} \frac{σ {(E B I T D A)}_{i}}{\overline{E B I T D A_{i}}} x T o t a l a s s e t s_{i t}}{\sum_{i = 1}^{n} T o t a l a s s e t s_{i t}}$ n – the number of enterprises in particular country and industry
10	Index of regulatory performance	EASE_BUS	0 = lowest performance to 1 = best performance
11	Private debt, loans and debt securities	PRIV_DEBT	Total value of loans and debt securities issued by households and nonfinancial corporations as a share of GDP
12	Annual growth of GDP	GDP_GRO	$\frac{G D P g r o w t h (a n n u a l %)}{100}$
13	Inflation	INFLAT	$\frac{\begin{matrix} I n f l a t i o n, c o n s u m e r p r i c e s \\ (a n n u a l %) \end{matrix}}{100}$

No	Variable	Abbreviation	Measures
1	Capital structure (total debt ratio)	DR	$\frac{t o t a l d e b t}{t o t a l a s s e t s}$
2	Assets structure (tangibility)	TANG	$\frac{f i x e d a s s e t s}{t o t a l a s s e t s}$
3	Size of the enterprise	SIZE	$ln (t o t a l a s s e t s)$
4	Growth opportunities	GROW	$\frac{Δ s a l e s r e v e n u e}{s a l e s r e v e n u e}$
5	Profitability	PROF	$\frac{E B I T}{t o t a l a s s e t s}$
6	Liquidity	LIQ	$\frac{c u r r e n t a s s e t s}{s h o r t - t e r m l i a b i l i t i e s}$
7	Nondebt tax shield	NDTS	$\frac{d e p r e c i a t i o n}{t o t a l a s s e t s}$
8	Debt capacity	DC	1	$D R_{t}$ for particular enterprise is lower than the median of debt ratio in industry ( $I N D_D R_{t - 1})$ over a minimum of three years
8	Debt capacity	DC	0	Other cases
9	Threshold value for debt capacity	IND_DR	Median of debt ratio in particular country and industry
9	Systematic business risk in industry	IND_Beta	$\frac{\sum_{i = 1}^{n} \frac{σ {(E B I T D A)}_{i}}{\overline{E B I T D A_{i}}} x T o t a l a s s e t s_{i t}}{\sum_{i = 1}^{n} T o t a l a s s e t s_{i t}}$ n – the number of enterprises in particular country and industry
10	Index of regulatory performance	EASE_BUS	0 = lowest performance to 1 = best performance
11	Private debt, loans and debt securities	PRIV_DEBT	Total value of loans and debt securities issued by households and nonfinancial corporations as a share of GDP
12	Annual growth of GDP	GDP_GRO	$\frac{G D P g r o w t h (a n n u a l %)}{100}$
13	Inflation	INFLAT	$\frac{\begin{matrix} I n f l a t i o n, c o n s u m e r p r i c e s \\ (a n n u a l %) \end{matrix}}{100}$

Source(s): Own elaboration