Variables

Measurement

Executive Compensation

Measured by the average wages in the company in a certain year

ROA

Measured as percentage of net income after tax to total assets

R O A = Profitaftertax Totalassets

ROE

Measured as percentage of net income after tax to total equity

R O E = Profitaftertax Shareholdersfund

Tobin’s Q

Measured as the market value of equity capital and the book value of firm’s debt divided by the book value of total assets

= MarketCapitalization + Totalassets Shareholdersfund Totalassets