| Variable (Notation) |
Measurement of Variable |
| Dependent VariableMandatory disclosure transparency score (MADTRA) |
The ratio of the total actual disclosure scores to the maximum expected disclosure scores. |
| Independent VariablesAudit committee accounting financial experts (ACCEX) |
The proportion of audit committee members who are accounting financial experts (has working experience as Certified Public Accountant (CPA), Chief Financial Officer (CFO), Chief Accounting Officer (CAO), auditors, vice presidents of finance, financial controller or any other positions in accounting or auditing field, or a member of professional accounting body) to total number of audit committee members. |
| Audit committee finance experts (FINEX) |
The proportion of audit committee members who are finance experts (has working experience as an investment banker, chief investment officer, financial analyst or any other corporate finance role) to total number of audit committee members. |
| Audit committee supervisory experts (SUPEX) |
The proportion of audit committee members who are supervisory experts (has working experience as the CEO, general partner, managing directors, COO or chairman of the board in a for-profit corporation) to total number of audit committee members. |
| Audit committee advance academic qualification (ADVAQ) |
The proportion of audit committee members with advanced academic qualification (has master’s degree or doctorates) to total numbers of audit committee members. |
| Audit committee training (TRAIN) |
The average of all trainings attended during the financial year by audit committee members. |
| Control VariablesAudit committee independence (INDEP) |
The proportion of independent directors that occupy positions on the audit committee to total numbers of audit committee members. |
| Audit committee size (ACSIZ) |
The number of directors on the audit committee. |
| Audit committee tenure (TNURE) |
The average length of tenure of independent audit committee members. |
| Firm performance (FIRPE) |
ROA, the ratio of earnings before interest and taxes to total assets. |
| Firm financial leverage (FILEV) |
The ratio of total liabilities to total assets. |
| Firm size (FISIZ) |
The natural logarithm of book value of total assets. |
