Table 2 Measurement of the variables.
Variable | Measurement |
|---|---|
Independent variables | |
EBITDA | Earnings + income tax + interest + depreciation + amortization |
EBIT | Earnings before interest and tax |
Dependent variable | |
Investment intensity (INV) | Total fixed assets at end-total fixed assets at beg. + depreciation |
Control variables | |
Size (S) | Total debt |
Age (AG) | No. of years from establishment year to current years |
Leverage (LEV) | total debt/total assets |
Growth rate (GRO) | Growth of firm in terms of profitability |
Growth of market share price (GP) | Growth of closing price of share |
Sales growth (SG) | Growth of firm in terms of sales |
