Table 1 Measurement of variables
Variables | Abbreviations | Measurements |
|---|---|---|
Inputs and outputs for firm efficiency | ||
Inputs | ||
Operating expenses | OPEX | Total expenses without cost of goods sold |
Cost of goods sold | COGS | Cost of sale for trading/service |
Property, plant and equipment | PPE | Net worth of property, plant and equipment |
Outputs | ||
Sales | Sales | Sales without other income |
Profit after tax | PAT | Net income after taxes |
Regression variables | ||
Return on asset | ROA | Earnings divided by total assets |
Controlling shareholdings | CS5 | Percentage of shareholdings held by the five largest shareholders |
Firm efficiency_Slack based model | EFF_SBM | Slack-based model of DEA |
Firm efficiency_Direct distance function | EFF_DDF | Directional distance function of DEA |
Control variables | ||
Board independence | BIND | Number of independent directors on the board |
Firm size | FSIZE | Natural log of total sales |
Firm leverage | FLEV | Debt divided by total assets |