Variable | Description |

m_{it} | Natural log-difference of M_{it}, where M_{it} is computed as liquid asset subtracting the sum of inventory and accounts receivable for firm i at the end of year t, as shown in [8] . |

y_{it } | Natural log-difference of total sales for firm i at the end of year t. |

w_{it} | Natural log-difference of W_{it}, where W_{it} is measured as the total payroll (given by “total wages payable”), divided by the number of employees for firm i at the end of year t. |

r_{it}_{ } | Natural log-difference of R_{it} where R_{it} is computed as the total financial expenditures divided by the total debt (given by “total liabilities”) for firm i at the end of year t, as shown in [9] . |