*6.6. Measurement of Variables*

The dependent variable of the study is financial risk disclosure and the independent variables are firm specific characteristics. The firm specific characteristics are measured in terms of the size of the company, financial performance, corporate financial leverage, liquidity, type of auditor, and the industry to which the company belongs. Table 2 presents the list of variables used in the paper and their methods of measurement.

**Table 2.** List of variables and their measurement methods. FRDI—financial risk disclosure index; FS—firm size; ROA—return on assets; FL—financial leverage; LIQD—liquidity; IT—industry type; AT—auditor type.

