| 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 |