Variable | Measurement | References |
Return on Asset | Net Profit after Tax Book/value of total asset | |
Return on Sales | Net Profit after Tax/Total Sales | |
Market Capitalization | Multiplying total common share outstanding with the current value of common stock | |
Earnings per Share | Earnings after tax/Total number of outstanding shares at the end of each financial year | |
Tobin’s Q | (MV Equity + BV Debt + BV Preferred Stock)/BV Assets | |
Firm Size | Natural logarithm of total Assets | |
Leverage (Short/Long term) | S.T.D/Total Assets & L.T.D/Total Assets | |
Industry | Dummy variable (value 1 = firm belongs to financial industry, value 0 = otherwise) | |