| Variable | Definition |
| Dependent variable |
|
| Div_Yield | Cash dividends per share/Price per share |
| Key Testing Variables (Key Proxy) | |
| IPO_RI | = 1 if there is IPO or rights issue in current years or last year = 0 otherwise |
| Largest | = 1 if the majority shareholders hold more than 50% of shares = 0 otherwise |
| Gov | =1 if the company’s dominant shareholder is the government = 0 otherwise |
| Controlling variables |
|
| Size | Natural log of total assets |
| Leverage | Total liabilities/total assets |
| Std Earnings | Mean absolute deviation from the mean of net income/ Mean of total assets over the period |
| Div_Stock | = 1 if the company distributes the stock dividend in the same year; = 0 otherwise; |
| ROE | Net Income/Equity |