Variable description and measurement
| Variable name | Measurement |
|---|---|
| Cash holding | Cash and cash equivalent scaled by total tangible assets |
| Post | Dummy variable equals one for observation quarters in 2018 and 2019. Zero for observation quarters in 2016 and 2017 |
| IFRS-9 | Dummy variable equals one for treatment firms and zero for benchmark firms |
| Trade receivables | Trade receivable divided by net sales/revenue |
| Trade payable | Trade payables divided by cost of sales |
| Growth opportunities | Percentage change in total assets |
| Sales | Net sales/revenue scaled by total assets |
| Profitability | Gross profit scaled by net sales/revenue |
| Finance cost | Total interest expenses scaled by total long term debt |
| Leverage | Total debt scaled by total assets |
| Size | Natural logarithm of total assets |
| Domestic credit (credit) | The sum of financial resources provided to the private sector by financial institutions domiciled in the country as a percentage of GDP |
| Real interest rate (RIR) | Annualised inflation-adjusted lending rate |
| GDP growth rate (GDPGrowth) | Annualised GDP growth rate |
| GDP per capita (GDP capita) | GDP per capita |
| Variable name | Measurement |
|---|---|
| Cash holding | Cash and cash equivalent scaled by total tangible assets |
| Post | Dummy variable equals one for observation quarters in 2018 and 2019. Zero for observation quarters in 2016 and 2017 |
| IFRS-9 | Dummy variable equals one for treatment firms and zero for benchmark firms |
| Trade receivables | Trade receivable divided by net sales/revenue |
| Trade payable | Trade payables divided by cost of sales |
| Growth opportunities | Percentage change in total assets |
| Sales | Net sales/revenue scaled by total assets |
| Profitability | Gross profit scaled by net sales/revenue |
| Finance cost | Total interest expenses scaled by total long term debt |
| Leverage | Total debt scaled by total assets |
| Size | Natural logarithm of total assets |
| Domestic credit (credit) | The sum of financial resources provided to the private sector by financial institutions domiciled in the country as a percentage of GDP |
| Real interest rate (RIR) | Annualised inflation-adjusted lending rate |
| GDP growth rate (GDPGrowth) | Annualised GDP growth rate |
| GDP per capita (GDP capita) | GDP per capita |
Source(s): Created by author