Variables

Code

Definitions

R & D intensity

RD

R & D expenses/corporate main business income

Overconfidence

OC

If the number of shares held by the executive team in this year is more than that in the previous year, OC equals 1; otherwise OC equals 0

Financing constraints

FC

If the SA index of a observation is less than the mean of all observations, FC equals 1. Otherwise FC equals 0.

Firm size

SIZE

Natural logarithm of total assets

Asset-liability ratio

LEV

Total assets/Total liabilities

Tobin q

TBQ

Market value of assets/The book value of assets

Return on assets

ROA

Net profit/Average total assets

Ownership concentration

SHARE

The proportion of the first largest shareholder

Duality

DUA

If the chairman and general manager are the same person, DUA equals 1; otherwise DUA equals 0