Table 1 Control variables—definitions and measurements.
Variable | Symbol | Measurement |
|---|---|---|
Board size | BSit | \({\rm{Natural}}\,{\rm{logarithm}}\,{\rm{of}}\,{\rm{Total}}\,{\rm{Number}}\,{\rm{of}}\,{\rm{Directors}}\) |
CEO duality | CEODUit | “1” if the CEO and Board Chairman is same person, otherwise “0” |
Firm size | FSIZEit | \({\rm{Natural}}\,{\rm{logarithm}}\,{\rm{of}}\,{\rm{Total}}\,{\rm{Assets}}.\) |
Leverage | LEVit | \({\rm{Ratio}}\,{\rm{of}}\,{\rm{Total}}\,{\rm{debt}}\,{\rm{to}}\,{\rm{Total}}\,{\rm{Assets}}\) |
Growth | Growthit | \(\% \,{\rm{age}}\,{\rm{Annual}}\,{\rm{Change}}\,{\rm{in}}\,{\rm{Sales}}\) |
Profit margin | PMit | \({\rm{Net}}\,{\rm{income}}\,{\rm{divided}}\,{\rm{by}}\,{\rm{Total}}\,{\rm{Sales}}\) |
Payout ratio | PRit | \({\rm{Cash}}\,{\rm{dividend}}\,{\rm{divided}}\,{\rm{by}}\,{\rm{Net}}\,{\rm{income}}\) |
Liquidity ratio | LIQRit | \({\rm{Current}}\,{\rm{Assets}}/{\rm{Current}}\,{\rm{Liabilites}}\) |
