Table 1 Definitions of the variables... | Emerald Publishing

Table 1

Definitions of the variables

Variable	Explanation
debt ratio	Long-term debt divided by total assets (%). See Equation (1)
OC/L	Employee-based organizational capital divided by the number of employees. Calculated from labor costs related to organizational workers
R&D/L	Employee-based R&D capital divided by the number of employees. Calculated from labor costs related to R&D workers
OCE	Entrepreneurial organizational capital. Calculated from the entrepreneurial income of entrepreneurs possessing managerial or financial capability or knowledge
R&DE	Entrepreneurial R&D capital. Calculated from the entrepreneurial income of entrepreneurs possessing technical capability or knowledge
K/L	Tangible capital, i.e. buildings and machinery, divided by the number of employees
ROA	Return on assets measured as net income/total assets
Firm risk	Standard deviation of net income covering periods t, t−1 and t−2
L	The number of employees
Firm age	Calculated from the year the firm entered the VAT register, or the year it was founded; the earlier one is used
HighTech	A dummy variable for high-tech firms
machinv/L	Net investments in machinery divided by the number of employees

Variable	Explanation
debt ratio	Long-term debt divided by total assets (%). See Equation (1)
OC/L	Employee-based organizational capital divided by the number of employees. Calculated from labor costs related to organizational workers
R&D/L	Employee-based R&D capital divided by the number of employees. Calculated from labor costs related to R&D workers
OCE	Entrepreneurial organizational capital. Calculated from the entrepreneurial income of entrepreneurs possessing managerial or financial capability or knowledge
R&DE	Entrepreneurial R&D capital. Calculated from the entrepreneurial income of entrepreneurs possessing technical capability or knowledge
K/L	Tangible capital, i.e. buildings and machinery, divided by the number of employees
ROA	Return on assets measured as net income/total assets
Firm risk	Standard deviation of net income covering periods t, t−1 and t−2
L	The number of employees
Firm age	Calculated from the year the firm entered the VAT register, or the year it was founded; the earlier one is used
HighTech	A dummy variable for high-tech firms
machinv/L	Net investments in machinery divided by the number of employees

Source(s): Created by author