Description of the variables and references
| Type of variables | Variable | Form | Description | Sign | Main literature |
|---|---|---|---|---|---|
| Dependent | ROA | Net profit average Total asset | Return on assets | Salomon & Wu (2017); Peris (2017); Wu & Salomon (2017) | |
| ROE | Net profit average Equity | Return on equity | Salomon & Wu (2017); Peris (2017); Wu & Salomon (2017) | ||
| ROIC | EBIT (1-Taxes) Invested capital | Return on invested capital | Salomon & Wu (2017); Peris (2017); Wu & Salomon (2017) | ||
| Main dependent | REG1 | 0 = 2002 to 2011 1 = 2012 to 2021 | Variable that seeks to identify the period of greatest regulatory turbulence in the Brazilian energy sector | (−) | |
| Foreign | 0 = national 1 = foreign | Variable that identifies year by year if the company had foreign ownership | (+) | Hymer (1960); Zaheer (1995) | |
| Ranking | WGI | Difference of WGI between host country (Brazil) and home country of MNEs as a variable. Estimate of Governance (ranges from approximately −2.5 (weak) to 2.5 (Strong) governance performance | (−) | ||
| PDI | Psychic distance index | Psychic Distance Index between Brazil and the MNE’s home country | (−) | ||
| Control | Exper | Experience | Number of years the firm has operated in Brazil | (+) | Petersen & Pedersen (2002). Gu et al. (2017). Perkins (2014). |
| EBITDAMg | EBITDA Net revenue | Indicator that aims to measure a company’s operating profitability | (+) | Peris (2017); Szuster et al. (2013) | |
| INV/Eq | Investment Net Worth | Indicator that evaluates how much of the volume in investments in subsidiaries and others is financed by equity | (+) | ||
| Capex/Deprec | Tanqible + intangible Depreciation + Amortization | Correlation between the composition of investments in CAPEX – Capital Expenditure and the depreciation or amortization of assets | (+) | ||
| CurrLiq | Current assets Current liabilities | Corresponds to the ratio between current assets and current liabilities | (+) | ||
| NWC | Current assets (−) Current liabilities | Measures the need for working capital, or the amount that is needed to make a company’s business happen | (+) | ||
| NetMg | Net profit Net revenue | Indicator that seeks to demonstrate the company’s net gain in each sales unit | (+) | ||
| LogRev | Log (revenue) | Proxy for company size | (+) | ||
| Debt/Equity | Total debt Equity | Corresponds to the ratio between total debt and equity | (−) | ||
| IEEXVar | IEEX variation | Bovespa Electric Energy Index | (+) | ||
| Pandemic | 0 = 2002 to 2019 1 = 2020 to 2021 | Control for the pandemic years | (+) |
| Type of variables | Variable | Form | Description | Sign | Main literature |
|---|---|---|---|---|---|
| Dependent | ROA | Return on assets | |||
| ROE | Return on equity | ||||
| ROIC | Return on invested capital | ||||
| Main dependent | REG1 | 0 = 2002 to 2011 | Variable that seeks to identify the period of greatest regulatory turbulence in the Brazilian energy sector | (−) | |
| Foreign | 0 = national | Variable that identifies year by year if the company had foreign ownership | (+) | Hymer (1960); | |
| Ranking | WGI | Difference of WGI between host country (Brazil) and home country of MNEs as a variable. Estimate of Governance (ranges from approximately −2.5 (weak) to 2.5 (Strong) governance performance | (−) | ||
| PDI | Psychic distance index | Psychic Distance Index between Brazil and the MNE’s home country | (−) | ||
| Control | Exper | Experience | Number of years the firm has operated in Brazil | (+) | |
| EBITDAMg | Indicator that aims to measure a company’s operating profitability | (+) | |||
| INV/Eq | Indicator that evaluates how much of the volume in investments in subsidiaries and others is financed by equity | (+) | |||
| Capex/Deprec | Correlation between the composition of investments in CAPEX – Capital Expenditure and the depreciation or amortization of assets | (+) | |||
| CurrLiq | Corresponds to the ratio between current assets and current liabilities | (+) | |||
| NWC | Current assets (−) Current liabilities | Measures the need for working capital, or the amount that is needed to make a company’s business happen | (+) | ||
| NetMg | Indicator that seeks to demonstrate the company’s net gain in each sales unit | (+) | |||
| LogRev | Log (revenue) | Proxy for company size | (+) | ||
| Debt/Equity | Corresponds to the ratio between total debt and equity | (−) | |||
| IEEXVar | IEEX variation | Bovespa Electric Energy Index | (+) | ||
| Pandemic | 0 = 2002 to 2019 | Control for the pandemic years | (+) |
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