|
Dependent
Variables
|
|
|
|
|
Return
on Assets (ROA)
|
Net income / Total assets
|
Ratio
|
CODAL
|
|
Return
on Equity (ROE)
|
Net
income / Shareholders' equity
|
Ratio
|
CODAL
|
|
Independent
Variables
|
|
|
|
|
(a)
Firm-specific Variables
|
|
|
|
|
Current
Ratio
|
Current assets / Current liabilities
|
Ratio
|
CODAL
|
|
Financial
Leverage
|
Total debt / Total assets
|
Ratio
|
CODAL
|
|
Sales
Growth
|
(Sales_t - Sales_(t-1)) / Sales_(t-1)
|
Percentage
|
CODAL
|
|
Price-to-Earnings
Ratio
|
Market price per share / Earnings per share
|
Ratio
|
TSE
|
|
Firm
Size
|
Natural logarithm of total assets
|
Log-value
|
CODAL
|
|
(b)
Macroeconomic Variables
|
|
|
|
|
GDP
|
Natural
logarithm of annual GDP
|
Log (Rials)
|
CBI / SCI
|
|
Money
Supply (M2)
|
Natural
logarithm of the broad money supply measure.
|
Log (Rials)
|
CBI
|
|
Exchange
Rate
|
Natural logarithm of Exchange Rate
|
Log (Rials/USD)
|
CBI
|
|
Interest
Rate
|
Annual
interest rate of government bonds.
|
Percentage
|
CBI
|
|
Inflation
Rate
|
Annual consumer price index change (%)
|
Percentage
|
SCI
|
|
Government
Expenditure
|
Natural logarithm of Government consumption,
investment, and transfers
|
Log (Rials)
|
CBI
|
|
Tax
Revenue
|
Natural
logarithm of total government tax revenue
|
Log (Rials)
|
CBI
|
