Table 2 Measurement of control variables
From: IFRS adoption and the readability of corporate annual reports: evidence from an emerging market
Variable | Measurement |
|---|---|
Company size (SIZE) | Company size was measured using log10 of the book value of the total assets at the end of the fiscal year |
Profitability (PROF) | Profitability was measured by return on assets (ROA), which was calculated as follows: ROA = Net profit after tax (Zakat)/Total assets |
Leverage (LEV) | The leverage was measured through the debt ratio, which was calculated as follows: Debt ratio = Total liabilities/Total asset |
Business sector (SECT) | The business sector is a dummy variable that takes the value of 1 if the company is in the industrial sector and 0 if not |