Table 1 Definitions and measurement of research variables
Variables | The type of the measure | Measurement |
|---|---|---|
Independent variable | ||
Corporate risk disclosure | Index | CRD Index = Σ Actual Score / Σ Maximum Score points |
Dependent variable | ||
Firm value | Tobin’s Q | Tobin’s Q = (Total debt + market value of equity) / Book value of total assets |
Moderator variable | ||
Dividend policy | Dividend payout ratio | Dividend payout ratio is measured is current year dividends divided by current share price, or dividend per share over earnings per share |
Control variables | ||
Firm size | Numeric value | Natural logarithm of total assets |
Profitability | Financial ratio | Return on Equity ratio is measured by dividing net income by shareholder equity |
Liquidity | Financial ratio | Current ratio is measured by dividing current assets by current liabilities |
Leverage | Financial ratio | Debt / Equity ratio is measured by dividing total liabilities by total equity |