Table 2

Definition and operational variables

VariableVariable nameAcronymMeasurement
DependentReturn On AssetROACalculated by comparing net profit and total assets (Chaudhry et al., 2020)
Tobin’s qTobin’s qCalculated by the number of firm stocks outstanding multiplied by the firm closing price plus the market value of debt divided by total assets (Bansal and Singh, 2022; Al Farooque et al., 2020)
IndependentAudit committee sizeACSIZEThe number of audit committees in the firm (Musallam, 2020)
Audit committee meetingsACMEETThe number of audit committee meetings in one year (Fariha et al., 2022)
Audit committee expertiseACEXPERTISEThe number of audit committees with accounting and finance expertise compared with the total number of audit committee members in the firm (Musallam, 2020)
Nomination and remuneration committeesNRCDummy variable, given a value of 1 if there is a nomination and remuneration committee in the company and a value of 0 if there is no one (Bansal and Singh, 2022; Puni and Anlesinya, 2020)
Institutional ownershipIOTotal shares owned by the institution divided by the number of outstanding shares (Mishra and Kapil, 2017; Salehi et al., 2018)
Foreign OwnershipFOTotal shares owned by foreigners divided by the number of outstanding shares (Saidat et al., 2019)
ModeratingCOVID-19COVThe dummy variable, the period before COVID-19 (2018 and 2019), was given a score of 0 and a score of 1 for the COVID-19 crisis (2020 and 2021)
ControlLeverageLEVMeasured by the DAR ratio, namely total debt divided by total assets
GrowthGROWTHTotal assets at the end of the period minus the total assets at the beginning of the period divided by the total assets at the end of the period
COVID-19COVDummy year control is given a value of 1 if the year is the year that COVID-19 occurred (2020 and 2021) and is given a value of 0 if it is not the year that COVID-19 occurred (2018–2019)

Source(s): Table created by author

or Create an Account

Close Modal
Close Modal