Table 1 Measures employed in the study
From: Sensitivity of firm size measures to practices of corporate finance: evidence from BRICS
Variable | Nature of variable | Proxy | Measure |
|---|---|---|---|
Firm size | Independent variable | Total assets | Ln (total assets) |
Total sales | Ln (total sales) | ||
Market value of equity | Ln (market cap) | ||
Number of employees | Ln (number of employees) | ||
Financial policy | Dependent variable | Financial leverage | Book value of debt/equity |
Financial leverage | Total asset/total equity | ||
Payout policy | Dependent variable (dummy) | Dividend payout | Dividend payment (dummy) |
Investment policy | Dependent variable | CAPEX | Net CAPEX/total asset |
Diversification | Dependent variable | Business segments | Ln (no. of business segments) |
Firm performance | Dependent variable | ROA | Profit after taxes/total asset |
ROE | PAT/total equity | ||
Managerial compensation and incentives | Dependent variable | Pay level | Pay level and disclosers (dummy) |
Corporate governance (board structure) | Dependent variable | Board independence | Ln (no. of independent directors on board) |
Ln (no. of non-executive directors on board) |