Definition

Variable

The financial flexibility calculated in this paper is the company with financial flexibility that has not used the debt capacity at least for three consecutive years

FF1

Financial leverage: total debts to total assets ratio

LEV

market to book ratio, calculated as the book value of the assets plus value of stock market minus book value of stock divided by book value of assets

MTB

Logarithm of total assets of company

Size

Fixed assets to total assets ratio

Tangibility

Profit obtained from extraordinary items divided by total assets

Profitability

Amount of yearly inflation obtained from global bank

Inflation

Cash flow of the companies

CF

Investment activity

IA

Company payments to total assets ratio

EPR

Amount of cash holding of company

CASH

The financial crisis which is a virtual variable and is 1 for the years 2009 and 2010 and otherwise it is zero

CRISIS

Year

YEAR

Industry

IND

Debt payable after one years to total debts

MATURE

Amount of dividend profit

DIVIDEND

Amount of tax paid by company

TAX

Depreciation to total assets ratio

NDTS