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

Goo, Yeung-Ja James; Chi, Der-Jang; Shen, Zong-De

doi:10.1186/s40064-016-2186-5

SpringerPlus

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)

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