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Table 2 Research variables

From: Improving the prediction of going concern of Taiwanese listed companies using a hybrid of LASSO with data mining techniques

No. Variable description/Definition or formula Sources
X1 Total assets: Natural logarithm of total assets Zhou et al. (2012), Chen et al. (2014), Yeh et al. (2014) and Chen and Lee (2015)
X2 Net sales: Natural logarithm of net sales Tang and Firth (2011) and Chen et al. (2014)
X3 Current ratio: Current assets/Current liabilities Lin (2009), Huang and Lu (2000), Sun et al. (2011), Zhou et al. (2012), Yeh et al. (2014), Chen and Lee (2015) and Chen et al. (2015)
X4 Debt ratio: Total liabilities/Total assets Lin (2009), Huang and Lu (2000), Yeh et al. (2010), Jiang and Habib (2012), Chen et al. (2014, 2015), Yeh et al. (2014) and Chen and Lee (2015)
X5 Current assets: Natural logarithm of current assets Korol (2013)
X6 Undistributed surplus: Natural logarithm of undistributed surplus Chen and Lee (2015)
X7 Long term liabilities: Natural logarithm of long term liabilities Korol (2013)
X8 Inventory: Natural logarithm of inventory Salehi and Fard (2013)
X9 Total equity: Natural logarithm of total equity Korol (2013)
X10 Total liabilities: Natural logarithm of total liabilities Chen and Lee (2015)
X11 Net profit before tax: Income before tax Chen et al. (2015)
X12 Operating cash flow: Cash flow from operating activities Jiang and Habib (2012) and Chen et al. (2015)
X13 Accounts receivable turnover: Net sales/Average accounts receivable Sun and Li (2008), Huang and Lu (2000), Yeh et al. (2010), Chen and Lee (2015) and Chen et al. (2015)
X14 Inventory turnover: Cost of goods sold/Average inventory Zhou et al. (2012), Chen and Lee (2015) and Chen et al. (2015)
X15 Stockholding ratio of directors and supervisors: Number of stocks held by directors and supervisors/Total number of common stock outstanding Chen and Lee (2015) and Chen et al. (2015)
X16 Big CPA firm or not (Big 4 in Taiwan): 1 for companies audited by BIG4, otherwise is 0 Jiang and Habib (2012), Yeh et al. (2014), Chen and Lee (2015) and Chen et al. (2015)
X17 Change CPA firm (CPA) or not: 1 is for change; 0 is for non-change Anandarajan and Anandarajan (1999), Yeh et al. (2014) and Chen and Lee (2015)
X18 Current liabilities: Natural logarithm of current liabilities Salehi and Fard (2013)
X19 Operating income: Natural logarithm of operating income Salehi and Fard (2013) and Chen et al. (2015)
X20 Total assets turnover: Net Sales/Average total assets Sun and Li (2008) and Sun et al. (2011)
X21 Earnings before interest and tax (EBIT) Salehi and Fard (2013) and Chen et al. (2015)
X22 Return on assets (ROA): [Net income + interest expense × (1–tax rate)]/Average total assets Martens et al. (2008), Lin (2009), Sun et al. (2011), Zhou et al. (2012), Jiang and Habib (2012) and Chen et al. (2015)