Table research variables and measurement
| Variable | Description | Measurement | |
|---|---|---|---|
| Dependent variable | Cumulative abnormal return (CAR) | The window period abnormal returns are used to measure cumulative abnormal returns | Abnormal return (t−3, t+3) |
| Independent variable | Earnings performance (EP) | The earnings per share will measure the earnings performance of company | (Earnings per share-Earnings per share, y−1)/Pt−2 |
| Moderating variable | Internal control (IC) | The natural logarithm will measure the company’s internal control index | ln (Internal control index) |
| Control variable | Company size (SIZE) | The natural logarithm will measure the size of the company for total assets | ln (Total asset) |
| Control variable | Leverage ratio (LEV) | Leverage ratio will be measured by dividing total liability on total assets | Total liability/Total Asset |
| Control variable | Return on total assets (ROA) | Return on total assets can be measured by dividing net income on total assets | Net income/Total Asset |
| Control variable | Systemic risks (BETA) | Systematic risk calculated using daily stock returns over the past one year | Capital Assets Pricing Model (CAPM) |
| Control variable | Operating income growth rate (GROWTH) | The operating income will measure the growth rate of company | Current year operating income/last year operating income - 1 |
| Control variable | Audit quality (BIG4) | The audit quality is measured by Big 4 auditors | if the auditor is big4, it is 1; otherwise, it is 0 |
| Control variable | Board size (BOARD) | The natural logarithm will measure the board size | ln (Board size) |
| Control variable | Independent director (INDEP) | The independent director can be measured by dividing independent directors on board directors | Independent directors/Board directors |
| Control variable | Firm age (FIRMAG) | The natural logarithm will measure the firm age | ln (Current year -Establishment year + 1) |
| Variable | Description | Measurement | |
|---|---|---|---|
| Dependent variable | Cumulative abnormal return (CAR) | The window period abnormal returns are used to measure cumulative abnormal returns | Abnormal return (t−3, t+3) |
| Independent variable | Earnings performance (EP) | The earnings per share will measure the earnings performance of company | (Earnings per share-Earnings per share, y−1)/Pt−2 |
| Moderating variable | Internal control (IC) | The natural logarithm will measure the company’s internal control index | ln (Internal control index) |
| Control variable | Company size (SIZE) | The natural logarithm will measure the size of the company for total assets | ln (Total asset) |
| Control variable | Leverage ratio (LEV) | Leverage ratio will be measured by dividing total liability on total assets | Total liability/Total Asset |
| Control variable | Return on total assets (ROA) | Return on total assets can be measured by dividing net income on total assets | Net income/Total Asset |
| Control variable | Systemic risks (BETA) | Systematic risk calculated using daily stock returns over the past one year | Capital Assets Pricing |
| Control variable | Operating income growth rate (GROWTH) | The operating income will measure the growth rate of company | Current year operating income/last year operating income - 1 |
| Control variable | Audit quality (BIG4) | The audit quality is measured by Big 4 auditors | if the auditor is big4, it is 1; otherwise, it is 0 |
| Control variable | Board size (BOARD) | The natural logarithm will measure the board size | ln (Board size) |
| Control variable | Independent director (INDEP) | The independent director can be measured by dividing independent directors on board directors | Independent directors/Board directors |
| Control variable | Firm age (FIRMAG) | The natural logarithm will measure the firm age | ln (Current year -Establishment year + 1) |
Source(s): Authors' own work
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