Variable code | Variable name | Variable measure |
---|---|---|
SIGMA | Volatility of abnormal returns | Standard deviation of firm-specific weekly return |
RET | Average abnormal return | Average firm-specific weekly return |
SIZE | Total assets | The logarithm of total assets |
LEV | Asset–liability ratio | Total liabilities to total assets |
ROE | Return on equity | Net income to net assets |
ABSDA | Accrued earnings management | The absolute of discretionary accrued earnings |
TURN | Total assets turnover rate | Operating income to total assets |
GENDER | Male Chief Executive Officer (CEO) | Male CEO are 1 and female CEO are 0 |
DEGREE | Highly educated CEO | 1 for CEO with a bachelor's degree or above, and 0 for others |
DUAL | Combining the CEO and Chairman | 1 for CEO as chairman, and 0 for others |
SALARY | Executive compensation incentive | Percentage of top three executives' compensation |
INDEP | Independent directors | Proportion of independent directors in the board |
FINRISK | Financial crisis | 1 for after the 2008 financial crisis, and 0 otherwise |
ABCFO | Abnormal cash flow | Abnormal cash flow of REM (Real Earnings Management) (Roychowdhury 2006) |
PPE | The proportion of fixed assets | Ratio of fixed assets |