Category

Variable name

Variable symbol

Variable description

Explained variable

Book leverage (asset-liability ratio)

bkl

Total debt/Total assets

Market value leverage

mkl

Total debt/Market price of equity

Explanatory variable

Company size

size

Natural logarithm of total assets

Market-to-book ratio

mtbr_a

Market price of equity/Total assets

Profitability

prof

EBITDA/Total assets

Asset tangibility

tang

(Net value of fixed assets + Net value of stock)/Total assets

Control variable

Altman Z Scoring Value

zscore

1.2 * current capital/total assets + 1.4 * retained earnings/total assets + 3.3 * EBIT/total assets + 0.6 * market price of equity/total liabilities + sales revenue/total assets

Non-debt tax shield

shield

Depreciation of fixed assets/Total assets

Selling, general and administrative costs

sgax

(Sales cost + management fees)/Total assets

Capital investment

capin

Capital expenditure/(net value of fixed assets of the previous period+ net value of inventory of the previous period)

Annual rate of return of individual share

stkrt