Because the total assets of listed companies are too large, this article uses the natural logarithm of total assets (LnSize) instead of company size (Size) as a control variable.
The logarithmic representation is to make econometric calculations more convenient.
1. Logarithms can turn division (expressing growth rate) into subtraction
2. Logarithms can be used to calculate continuous compounding, so that the growth rate can be unified Differences in calculations
Basically, empirical research in finance and economics must first perform logarithmic changes on the data, and few directly run models on the data. Extended information
The total assets of a company refer to all the assets owned or controlled by the enterprise. Including current assets, long-term investments, fixed assets, intangible and deferred assets, other long-term assets, deferred taxes, etc., which is the total assets of the enterprise's balance sheet.
(1) Current assets refer to the total assets that an enterprise can realize or consume within one year or within a production cycle that exceeds one year. Including cash and various deposits, short-term investments, receivables and prepayments, inventories, etc.
(2) Fixed assets refer to the total funds occupied by the enterprise’s net fixed assets, liquidation of fixed assets, projects under construction, and pending fixed asset losses.
(3) Intangible assets refer to assets that are used by the enterprise for a long time and have no physical form. Including patent rights, non-patented technology, trademark rights, copyrights, land use rights, goodwill, etc.
Baidu Encyclopedia-Natural Logarithm
Baidu Encyclopedia-Total Assets