Table 1.
Variable descriptions.
| Variables | Definition/explanation |
|---|---|
| Dependent variables | |
| MVES | Price or market value of equity per share |
| MVETA | Market value of equity divided by total assets less current liabilities (used in Model 5) |
| Independent variables | |
| BVCS | Core book value per share (these exclude net pension assets – see below) |
| LTDS | Long term debt per share |
| CoreEPS | Core earnings per share (these exclude pension earnings – see below) |
| CorebPSCEPS | Core earnings before pension service cost per share |
| PAS | Recognised pension assets per share calculated as the fair market value of pension assets per share |
| PLS | Recognised pension liabilities per share calculated as the actuarial present value of pension liabilities per share |
| NPAS | Recognised net pension assets per share calculated as the difference between fair market value of pension assets and actuarial present value of pension liabilities per share |
| PensionEPS | Pension earnings per share |
| ACTGLPS | Actuarial gains and losses per share (disclosed in the term ‘remeasurement’ after IAS 19R) |
| PSCPS | Pension service cost per share |
| PIPS | Pension interest income per share (expected return before IAS 19R) measured as the return on pension assets excluding actuarial gains. |
| PEPS | Pension interest expense per share equal to the increase during a period in the present value of a DB obligation arising because the benefits are one period closer to settlement. |
| ROACore | Return on assets measured as core earnings divided by total assets less net pension assets, less current liabilities |
| BVCTA | Core book value divided by total assets less net pension assets, less current liabilities |
| NPATA | Recognised net pension assets calculated as the difference between fair market value of pension assets and actuarial present value of pension liabilities all divided by total assets less net pension assets, less current liabilities |
| PensEarnTA | Pension earnings divided by total assets less net pension assets, less current liabilities |
Note: the above definitions reflect the definitions in IAS 19 and IAS 19R (the revised version of June 2011).