Variable

Definition and Formulas

Investment rate ( $wik{b}_{it}$ )

Total investment in current period ( $I_{it}$ )/Total operating income in current period ( $Y_{it}$ ).

Total investment in current period ( $I_{it}$ ) = Net fixed assets in current period ( $K_{it}$ ) − Net fixed assets in last period ( $K_{it-1}$ ) + Current depreciation

Sales growth ( $wsk{b}_{it}$ )

Total operating income in current period ( $Y_{it}$ ) − Total operating income in last period ( $Y_{it-1}$ )/Total operating income in last period ( $Y_{it-1}$ )

Leverage ( $wa{k}_{it}$ )

Leverage in current period ( $L_{it}$ )/Total operating income in current period ( $Y_{it}$ )