Variables | Measurement | Sources |
Audit Quality | Dummy variable 1 if big four auditor exists and 0 otherwise; | |
Corporate Governance | Board independence (percentage of non-executive directors to total directors); | |
Leverage | Long-term debt/equity; | |
Profitability (PROF) | Profit after tax/total equity; | |
Firm Size (FSIZE) | Natural log of total assets | |