Table 1 Variable definitions Variable... | Emerald Publishing

Table 1

Variable definitions

Variable name	Symbol	Definition
Dependent variables
Return-on-assets	ROA	Net income ÷ total assets
Independent variables
Corporate governance compliance index	CGCI_UW	Equally weighted index constructed using the CCGP guidelines
Mediator
Leverage	DTA	Total debt ÷ total assets
Controls
Firm age	FIRM_AGE	Ln (years of company listing on the PSX)
Firm size	FIRM_SIZE	Ln (total assets)
Fixed asset ratio	FAR	The residual from the performance modified Jones model as per Kothari et al. (2005)
Sales growth	SALES_GROW	Percentage of change in annual sales revenue
Market capitalisation	MARK_CAP	Share price × total numbers of shares outstanding
Property, plant and equipment	PPE	Ln (total property, plant and equipment in thousands)

Variable name	Symbol	Definition
Dependent variables
Return-on-assets	ROA	Net income ÷ total assets
Independent variables
Corporate governance compliance index	CGCI_UW	Equally weighted index constructed using the CCGP guidelines
Mediator
Leverage	DTA	Total debt ÷ total assets
Controls
Firm age	FIRM_AGE	Ln (years of company listing on the PSX)
Firm size	FIRM_SIZE	Ln (total assets)
Fixed asset ratio	FAR	The residual from the performance modified Jones model as per Kothari et al. (2005)
Sales growth	SALES_GROW	Percentage of change in annual sales revenue
Market capitalisation	MARK_CAP	Share price × total numbers of shares outstanding
Property, plant and equipment	PPE	Ln (total property, plant and equipment in thousands)

Notes:

Ln denotes natural log; all continuous variables are winsorized at the first and 99th percentiles

Source: Authors’ own work