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