Variable

Variable definitions and calculation

Ins

If the D&O insurance is bought, the assignment will be 1, instead of 0

LIns

The number of continuous years of buying D&O insurance

Liticount

The number of listed companies involved in litigation of the previous period

Litiamount

Listed companies involved in the litigation amount of the previous period divided by the ratio of total assets at the beginning of multiplied by 100

Traindex

The judicial transparency index which was released in “Annual Report on China’s Rule of Law”

Tra

If the judicial transparency index is more than the national average value, its value will be 1, otherwise it would be 0

Hhi

The listed companies’ industry, the fender’ s index

Age

The listed company listed age take logarithm

Top10

The top 10 shareholders of the sum of the proportion

So

State-controlled so = 1, so other = 0

Cfe

The listed companies’ operating activities cash flow is divided by total assets

Size

At the end of year, the total assets of the exponential

Roe

Return on equity of listed companies

Lev

Asset-liability ratio of listed companies

Laz

The listed companies’ current assets turnover

Tbq

Tobin’ Q value of listed companies

Loss

Recently two fiscal year consecutive loss is 1, otherwise it would be 0

Foccur

If companies illegally make the irregularities, its value will be 1, otherwise it would be 0

Audit

If companies’ audit opinion is the standard unqualified opinion, its value will be 1, otherwise it would be 0

Industry

Industry virtual variable

Year

Year virtual variable