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| Variable name and symbol | Variable definitions | |
| Control Variable | Enterprise Feature | Enterprise Size (SIZE) | The natural logarithm of total assets at the end of a business |
| Listing period (AGEPUB) | Since the IPO business has been listed for years | ||
| Assets Structure | Leverage (LEV) | Total liabilities at the end of the year divided by total assets at the end of the year | |
| Capital Intensity (CAPINT) | Net fixed assets at the end of the year divided by total assets at the end of the year | ||
| Inventory Intensity (INVINT) | Year-end inventories divided by total assets at the end of the year | ||
| Profit Capability | Return of Asset (ROA) | Net profit divided by the average balance of total assets | |
| Investment Opportunity (MB) | Market book value ratio, year-end market value divided by its book value | ||
| Ownership Concentration (TOP1) | the largest shareholder’s stake | ||
| Nominal Tax Rate (TAXRATE) | The nominal tax rate for corporate income tax | ||
| Audit Opinion (OPINION) | Audit opinion for the year when the non-standard audit report to take 1, otherwise 0 | ||
| Property (STATE) | 1 when the enterprise belongs to state-owned enterprises, otherwise 0 | ||
| Annual Dummy Variable (YEAR) | Takes 1 when the variable data belongs to year k, 0 otherwise | ||
| Industry Dummy Variable (INDUR) | Takes 1 when the firm belongs to industry j, 0 otherwise | ||