Variable	Description	Source
TLA_CoC	The TLA_CoC indicates the alternative cost of capital measure based on a default probability of a fully levered firm and on a certain level of risk-free-rate used by analysist in the firm valuation. More in detail, the cost of capital is operationalized in four steps: 1) We calculate the ratios reported in the second column of the appropriate table in appendix (looking at the firm sector), linking coefficients, floor and cap to each ratio value; 2) We perform Equation (10) to have a final score; 3) Basing on the score range we associate the PD through Table 2 data; 4) Taking the risk-free selected by the expert in the valuation report and the PD we calculate the cost of capital through Equation (6).	Equity valuation reports and Amadeus Aida data base
Systematic_CoC	The Systematic_CoC is the CAPM-based calculation of the unlevered cost of capital. Unfortunately, in some reports Betas and market risk premium inputs are not indicated. The unlevered cost of capital is extrapolated from the firm equity value and the WACC or the Cost of equity, accordingly to Modigliani and Miller (1963) : $W A C C = r_{0} (1 - \frac{D}{V} t_{c}) \to r_{0} = \frac{W A C C}{(1 - \frac{D}{V} t_{c})}$ , $r_{E} = r_{0} + (r_{0} - r_{D}) \frac{D}{E} (1 - t_{c}) \to r_{0} = \frac{r_{E} + r_{D} \frac{D}{E} (1 - t_{c})}{1 + \frac{D}{E} (1 - t_{c})}$ .	Equity valuation reports
Size_premium	The Size_premium is the spread applied by accounting experts in the equity report to price the firm size effect.	Equity valuation reports
Firm_size	Firm_size is the control variable and takes the value of the logarithm of assets in model 2 and the logarithm of revenues in Model 3.	Equity valuation reports