Name
Symbol
Definition
The proportion of current R&D expenditure in total assets
RD_TAt
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_TAt-1
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_ORt
R&D expenditure in current period ÷ total operating income in current period
The proportion of last R&D expenditure in operating income
RD_ORt-1
R&D expenditure in last period ÷ total operating income in last period
Manager shareholding ratio in current period
MAN_SRt
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)2
Manager shareholding ratio cube in current period
（Number of shares held by executives in current period ÷ total shares in current period)3
The logarithm of managers’ total remuneration in current period
LnMAN_PAYt
The natural logarithm of the top three executives’ total remuneration in current period
The ratio of non-executive director in the board
BOARD_STt
The number of non-executive directors at the end of current period÷ number of directors at the end of current period
Financial gearing
LEVt
Total liability at the end of current period ÷ Total assets at the end of current period
The total operation income in current period
LnCsizet
Ln (operating income in current period)
Annual variable
Yearj
Dummy variable, take value 1 in the jth year, or take value 0
Industry variable
Indum
Dummy variable, take value 1 in the mth industry, or take value 0