Variable

Measurement

References

Return on Asset

Net Profit after Tax Book/value of total asset

(Aerts et al., 2008; Eng & Mak, 2003)

Return on Sales

Net Profit after Tax/Total Sales

(Chen & Wang, 2011; Chen et al., 2016) .

Market Capitalization

Multiplying total common share outstanding with the current value of common stock

(Abdolmohammadi, 2005; Anam et al., 2011) .

Earnings per Share

Earnings after tax/Total number of outstanding shares at the end of each financial year

(Kwanbo, 2011; Nor et al., 2016; Oeyono et al., 2011)

Tobin’s Q

(MV Equity + BV Debt + BV Preferred Stock)/BV Assets

(Agrawal & Knoeber, 1996; Rashid et al., 2010; Rashid, 2009)

Firm Size

Natural logarithm of total Assets

(Haji, 2013; Li et al., 2008; Patten 2002; Stanwick & Stanwick, 1998)

Leverage (Short/Long term)

S.T.D/Total Assets & L.T.D/Total Assets

(Cheng & Courtenay, 2006; Ho & Wong, 2001)

Industry

Dummy variable (value 1 = firm belongs to financial industry, value 0 = otherwise)

(Alsaeed, 2006; Cooke, 1992; Qiu et al., 2016)