The dependent variable of the regression equation, BOPEC Change for Bank Holding Company (BHC), i, during time, t, equals the summation of the following items:

- Alpha-one;
- Alpha-two;
- Beta-one times Firm Size for BHC, i, during time, t minus one;
- Beta-two through Beta-seven, each times a different Past Supervisory Rating variable for BHC, i, during time, t minus one - a summation of each of these terms;
- Beta-eight through Beta-sixteen, each times a different Financial Accounting variable for BHC, i, during time, t minus one - a summation of each of these terms;
- Beta-seventeen through Beta-twenty-one, each times a different Financial Market variable for BHC, i, during time, t minus one - a summation of each of these terms.
- Error term for BHC, i, during time, t.