Variables and their measurement
| Variables | Measurement |
|---|---|
| Dependent variables | |
| Return on assets (ROA) | Earnings before interest and Taxes (EBIT)/Total Assets |
| Market capitalization (MAC) | Natural log of market capitalization |
| Independent variables | 1 if true, otherwise 0 |
| Non-executive directorship | All the AC members are non-executive directors |
| Independence | At least two-thirds of AC members are independent |
| Expertise | At least one member is an accounting or related financial management expert |
| Size | The number of AC members is more than three |
| Gender diversity | At least one female director is present in the AC |
| Control variables | |
| Firm-size | Natural log of total assets |
| Asset turnover | Net sales/total assets |
| Leverage | Debt/equity |
| Variables | Measurement |
|---|---|
| Return on assets (ROA) | Earnings before interest and Taxes (EBIT)/Total Assets |
| Market capitalization (MAC) | Natural log of market capitalization |
| Non-executive directorship | All the AC members are non-executive directors |
| Independence | At least two-thirds of AC members are independent |
| Expertise | At least one member is an accounting or related financial management expert |
| Size | The number of AC members is more than three |
| Gender diversity | At least one female director is present in the AC |
| Firm-size | Natural log of total assets |
| Asset turnover | Net sales/total assets |
| Leverage | Debt/equity |
Source(s): Authors' computation
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