Variables and measures
| Type of variables | Variable name | Symbol | Measures |
|---|---|---|---|
| Independent variable | Working capital efficiency | WCE | |
| Cash conversion cycle | CCCY | Inventory cycle period + Receivables cycle period – payables cycle period | |
| Inventory cycle period | INCP | (Average of inventory/cost of goods sold) x 360 | |
| Receivables cycle period | RECP | (Average of receivable/credit sales) x 360 | |
| Payables cycle period | PACP | (Average of payable/cost of goods sold) x 360 | |
| Dependent variables | Capital structure decisions | CSD | |
| Total debt finance | TDF | Total debt to assets | |
| Long-term debt finance | LODF | Long-term debt to assets | |
| Short-term debt finance | SHODF | Short-term debt to assets | |
| Moderating variable | Foreign currency exchange risk exposure | FCRE EXCG EXCL | Foreign exchange gains recognized in profit or loss to total assets Foreign exchange losses recognized in profit or loss to total assets |
| Control variables | Firm size | FSZ | Log of total assets |
| Firm age | FAG | The number of years in operation from a firm’s inception | |
| Cash holding | CHL | Cash and cash equivalents to total assets | |
| Asset tangibility | ATAG | property, plant and equipment to total assets | |
| Operating cash flow | OCF | Total operating cash flow to total assets | |
| Covid-19 | COV | A dummy variable equals (1) in years 2020, 2021 and 2022, and (0) otherwise | |
| Board size | BSZ | Number of board members | |
| Board independence | BIND | The percentage of non-executive members to total members in the board | |
| Board gender diversity | BGDY | The percentage of female directors to total members in the board | |
| CEO duality | DUA | A dummy variable equal (1) if CEO is chairman and (0) otherwise | |
| Institutional ownership | IOW | The percentage of institutional ownership | |
| Managerial ownership | MOW | The percentage of managerial ownership |
| Type of variables | Variable name | Symbol | Measures |
|---|---|---|---|
| Independent variable | |||
| Cash conversion cycle | CCCY | Inventory cycle period + Receivables cycle period – payables cycle period | |
| Inventory cycle period | INCP | (Average of inventory/cost of goods sold) x 360 | |
| Receivables cycle period | RECP | (Average of receivable/credit sales) x 360 | |
| Payables cycle period | PACP | (Average of payable/cost of goods sold) x 360 | |
| Dependent variables | |||
| Total debt finance | TDF | Total debt to assets | |
| Long-term debt finance | LODF | Long-term debt to assets | |
| Short-term debt finance | SHODF | Short-term debt to assets | |
| Moderating variable | |||
| Control variables | Firm size | FSZ | Log of total assets |
| Firm age | FAG | The number of years in operation from a firm’s inception | |
| Cash holding | CHL | Cash and cash equivalents to total assets | |
| Asset tangibility | ATAG | property, plant and equipment to total assets | |
| Operating cash flow | OCF | Total operating cash flow to total assets | |
| Covid-19 | COV | A dummy variable equals (1) in years 2020, 2021 and 2022, and (0) otherwise | |
| Board size | BSZ | Number of board members | |
| Board independence | BIND | The percentage of non-executive members to total members in the board | |
| Board gender diversity | BGDY | The percentage of female directors to total members in the board | |
| CEO duality | DUA | A dummy variable equal (1) if CEO is chairman and (0) otherwise | |
| Institutional ownership | IOW | The percentage of institutional ownership | |
| Managerial ownership | MOW | The percentage of managerial ownership |
Source(s): Table created by the author