R&D | A continuous variable equals to the natural logarithm of the amount of the company's spending on R&D activity, recognised in the Profit & Loss Statement |
tax | A variable equals to a relation of paid, due and deferred taxes to total operating revenue. In the case of items where the value was negative, we truncated the variable to 0. The indicator reflects the part of the revenue related to the operating activity, which constitutes taxes. It approximates tax burdens due to the income tax. |
tax_spread | A variable equals the difference between the nominal and the effective tax rate; an effective tax rate is a ratio of taxes to gross income (before taxes). The difference reflects the use of tax reliefs available within the tax system of a country. |
growth | A dynamic variable reflects the growth opportunities of a firm, defined as a sales growth rate, i.e., a relation of the net sales in a given year to the net sales in the previous year. |
ROA | Rate of return on assets, informing about the profitability of the company's assets (relation of generated revenues to assets). It reflects how effectively each one EUR of the capital invested in the company creates new profits. |
patent | Number of patents obtained by the firm from the beginning of its existence, defined as a natural logarithm of (1+ number of patents). |
age | Number of months since the firm was established divided by the age of the oldest firm in the sample. |
cash_flow | Indicator representing the cash flows from operating activities scaled by total sales. It reflects the part of the sale revenues, which the company obtained in the form of real money (cash). |
debt | The debt ratio defined as the company's long-term liabilities to its total operating revenue ratio. |
industry | Division of companies according to the industry they operate in, based on Statistical Classification of Economic Activities in the European Communities, Rev. 2 (NACE Rev. 2)1 – high-tech, 2 – manufacturing and construction, 3 – water supply, sewerage, waste management and remediation activities; electricity, gas, steam and air conditioning supply, 4 – wholesale and retail trade, 5 – finance and insurance, 6 – ICT information and communication; real estate activities, 7 – professional, scientific and technical activities, 8 – administrative and support service, 9 – services (accommodation and catering services); arts, entertainment and recreation, and other services |