Firm Size
Proxy: Ln(Total Assets)
Definition & Description
Firm size is used to differentiate between large and small companies statistically. The scale is normalized using Natural Logarithm (Ln).
How to Use (Panel Data)
Almost always used as a control variable in financial regression models.
Full Explanation Article
Large companies usually have easier access to funding.
Larger size is associated with higher financial stability.
Related Reference Journals
- [1]Watts, R. L., & Zimmerman, J. L. (1986). Positive Accounting Theory.
Research Ideas
Firm size moderates the relationship between profitability and stock returns.
Frequently Asked Questions (FAQ)
What is the difference between this proxy and regular accounting variables?
For detailed information about this proxy, please refer to the article above. NgepetData can automatically extract the required data from your PDF Annual Report.
Where does the data come from to calculate this proxy?
For detailed information about this proxy, please refer to the article above. NgepetData can automatically extract the required data from your PDF Annual Report.
Can this proxy be used for all industry sectors?
For detailed information about this proxy, please refer to the article above. NgepetData can automatically extract the required data from your PDF Annual Report.