Name | Symbol | Definition |

The proportion of current R&D expenditure in total assets | RD_TA | R&D expenditure in current period ÷ total asset at the end of the current period |

The proportion of last R&D expenditure in total assets | RD_TA | R&D expenditure in last period ÷ total asset at the end of the last period |

The proportion of current R&D expenditure in operating income | RD_OR | R&D expenditure in current period ÷ total operating income in current period |

The proportion of last R&D expenditure in operating income | RD_OR | R&D expenditure in last period ÷ total operating income in last period |

Manager shareholding ratio in current period | MAN_SR | Number of shares held by executives in current period ÷ total shares in current period |

Manager shareholding ratio square in current period |
| （Number of shares held by executives in current period ÷ total shares in current period) |

Manager shareholding ratio cube in current period |
| （Number of shares held by executives in current period ÷ total shares in current period) |

The logarithm of managers’ total remuneration in current period | LnMAN_PAY | The natural logarithm of the top three executives’ total remuneration in current period |

The ratio of non-executive director in the board | BOARD_ST | The number of non-executive directors at the end of current period÷ number of directors at the end of current period |

Financial gearing | LEV | Total liability at the end of current period ÷ Total assets at the end of current period |

The total operation income in current period | LnCsize | Ln (operating income in current period) |

Annual variable | Year | Dummy variable, take value 1 in the jth year, or take value 0 |

Industry variable | Indu | Dummy variable, take value 1 in the mth industry, or take value 0 |