Table 1 Control variables Indicator... | Emerald Publishing

Table 1

Control variables

Indicator	Description
EBITDA margin	it represents the ratio of earnings before interests, taxes, depreciation and amortization divided by the value of revenue from business activities. It belongs to the category of profitability indexes. By controlling for variations in profitability, we can better isolate the effects of other independent variables on financial outcomes
Total assets	it represents the total assets reported by a company and provides indications about the size of the companies analyzed. By controlling for differences in company size, we can account for the potential influence of scale on financial performance
Market capitalization	it is the total market value of all relevant share types and refers to its value as of December 31 of each year analyzed. It provides indications about the size of the companies analyzed. Controlling for market capitalization helps to account for variations in company size and market influence
Debt on assets	it represents the ratio of total liabilities and total assets as of December 31 and is a measure of company’s financial leverage and level of indebtedness. By including it as a control variable, we can account for the potential impact of varying levels of debt on financial outcomes
Beta	Indicator of risk as the covariance between stock’s price and market’s price. Controlling for beta allows us to account for differences in risk exposure across companies, which may influence financial performance
Floating shares	it represents the total amount of share capital freely available to ordinary investors and is expressed as a percentage of total number of shares. It represents an indicator of stock liquidity. By including floating shares as a control variable, we can assess the potential impact of liquidity on financial outcomes and ensure that our analysis accounts for differences in market activity

Indicator	Description
EBITDA margin	it represents the ratio of earnings before interests, taxes, depreciation and amortization divided by the value of revenue from business activities. It belongs to the category of profitability indexes. By controlling for variations in profitability, we can better isolate the effects of other independent variables on financial outcomes
Total assets	it represents the total assets reported by a company and provides indications about the size of the companies analyzed. By controlling for differences in company size, we can account for the potential influence of scale on financial performance
Market capitalization	it is the total market value of all relevant share types and refers to its value as of December 31 of each year analyzed. It provides indications about the size of the companies analyzed. Controlling for market capitalization helps to account for variations in company size and market influence
Debt on assets	it represents the ratio of total liabilities and total assets as of December 31 and is a measure of company’s financial leverage and level of indebtedness. By including it as a control variable, we can account for the potential impact of varying levels of debt on financial outcomes
Beta	Indicator of risk as the covariance between stock’s price and market’s price. Controlling for beta allows us to account for differences in risk exposure across companies, which may influence financial performance
Floating shares	it represents the total amount of share capital freely available to ordinary investors and is expressed as a percentage of total number of shares. It represents an indicator of stock liquidity. By including floating shares as a control variable, we can assess the potential impact of liquidity on financial outcomes and ensure that our analysis accounts for differences in market activity

Source(s): Authors’ own work