Table 1 Variables and their meanings... | Emerald Publishing

Table 1

Variables and their meanings

Variable	Variable meaning/construction (data source)
lnAudfees	Log transformation of annual audit fees paid by client firms. (World scope)
l.lnAudfees	The lag dependent variable representing the first lag of lnAudfees
CDSTrade	Equal to one in the year and after the record date of CDS trade initiation and zero otherwise. (Markit)
lnTA	Log transformation of total assets of client firms. (World scope)
Lev	The ratio of total liabilities to total assets. (World scope)
WSPTB	Equal to price-to-book ratio. (World scope)
ROA	Net income divided total assets. (World scope)
OCF2TA	The ratio of net operating cash flows to total assets. (World scope)
FS2TSales	Foreign sales to total sales ratio. (World scope)
STCredMon	Short-term creditor monitoring
InvRec2TA	The ratio of the sum of total receivables and total inventories to total assets. (World scope)
big_5	Indicator variable equal to one if a firm is audited by a Big 5 auditor (PwC, KPMG, Ernst and Young, Deloitte, PKF (Pennell Kerr Foster)) and zero otherwise. (World scope)
economyclass	Economic classification of countries: 1 (0) for developed (developing)
protection	The indicator variable equals 1 if a firm's country of location is labeled as high investor country by La Porta et al. (2000) and 0 otherwise. Based on the Global Competitiveness index
CDSProt	Interaction of CDS trade and protection, i.e. ${C D S T r a d e}_{i t} \times {p r o t e c t i o n}_{j}$

Variable	Variable meaning/construction (data source)
lnAudfees	Log transformation of annual audit fees paid by client firms. (World scope)
l.lnAudfees	The lag dependent variable representing the first lag of lnAudfees
CDSTrade	Equal to one in the year and after the record date of CDS trade initiation and zero otherwise. (Markit)
lnTA	Log transformation of total assets of client firms. (World scope)
Lev	The ratio of total liabilities to total assets. (World scope)
WSPTB	Equal to price-to-book ratio. (World scope)
ROA	Net income divided total assets. (World scope)
OCF2TA	The ratio of net operating cash flows to total assets. (World scope)
FS2TSales	Foreign sales to total sales ratio. (World scope)
STCredMon	Short-term creditor monitoring
InvRec2TA	The ratio of the sum of total receivables and total inventories to total assets. (World scope)
big_5	Indicator variable equal to one if a firm is audited by a Big 5 auditor (PwC, KPMG, Ernst and Young, Deloitte, PKF (Pennell Kerr Foster)) and zero otherwise. (World scope)
economyclass	Economic classification of countries: 1 (0) for developed (developing)
protection	The indicator variable equals 1 if a firm's country of location is labeled as high investor country by La Porta et al. (2000) and 0 otherwise. Based on the Global Competitiveness index
CDSProt	Interaction of CDS trade and protection, i.e. ${C D S T r a d e}_{i t} \times {p r o t e c t i o n}_{j}$

Source(s): By Author