sir Suhail Ahmad Liquidity is one of the basic indicators of financial performance because the business of any institution stems from what it owns of liquidity and how and how much liquidity is used in investment, so we suggest that liquidity be a basic indicator of the model.

It depends on a number of issues, the most important of which is the Objectives of your study and the Question(s) you want to answer by your study. You may add Liquidity to the other predictors if you deem necessary to fulfil your study purposes. You may also want to add Tobin's Q as a financial performance variable.

Predictor variable is often confused with independent variable. Though these terms are often used interchangeably, they actually refer to two different concepts. Predictor variable and independent variable are both similar in that they are used to observe how they affect some other variable or outcome. The main difference is that independent variables can be used to determine if one variable is the cause of changes in another, whereas predictor variables cannot.

Independent variables are manipulated by the researcher in such a way that allows the researcher to conclude the independent variable either causes or does not cause the changes in the other variable or outcome. Predictor variables are generally not manipulated by the researcher. The differences and the changes in the predictor variable across subjects are usually naturally occurring. Independent variables are used in true experimental designs; predictor variables are used in nonexperimental research.

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