Variable | Description |
mit | Natural log-difference of Mit, where Mit is computed as liquid asset subtracting the sum of inventory and accounts receivable for firm i at the end of year t, as shown in [8] . |
yit | Natural log-difference of total sales for firm i at the end of year t. |
wit | Natural log-difference of Wit, where Wit is measured as the total payroll (given by “total wages payable”), divided by the number of employees for firm i at the end of year t. |
rit | Natural log-difference of Rit where Rit is computed as the total financial expenditures divided by the total debt (given by “total liabilities”) for firm i at the end of year t, as shown in [9] . |