Control variable

Measurement

Reference

Size

Log of total assets (AT)

(Campello & Gao, 2017)

Leverage

(Long-term debt (DLTT) + current debt (DLC))/total assets − book equity (CEQ))/total assets

(Campello & Gao, 2017)

Market_Book (M/B)

(Stock price (PRCC)*shares outstanding (CSHO) + total assets − book equity (CEQ))/total assets

(Campello & Gao, 2017)

Sales_Growth (S/G)

Change of sales/sales in t − 1

(Hansen & Mowen, 2012)

Tangibility

Property, plant, and

equipment (PPENT)/total assets

Campello & Gao, 2017

Profitability

Operating income (OIBDP)/total assets

(Campello & Gao, 2017)

Rating

The company’s credit rating

as provided by CSMAR

CSMAR

Long_Term_Debt_Ratio

Long term debt/total debt

(D’Mello et al., 2018)