Control variable | Measurement | Reference |
Size | Log of total assets (AT) | |
Leverage | (Long-term debt (DLTT) + current debt (DLC))/total assets − book equity (CEQ))/total assets | |
Market_Book (M/B) | (Stock price (PRCC)*shares outstanding (CSHO) + total assets − book equity (CEQ))/total assets | |
Sales_Growth (S/G) | Change of sales/sales in t − 1 | |
Tangibility | Property, plant, and equipment (PPENT)/total assets | |
Profitability | Operating income (OIBDP)/total assets | |
Rating | The company’s credit rating as provided by CSMAR | CSMAR |
Long_Term_Debt_Ratio | Long term debt/total debt | |