Variable types

Variable symbol

The variable name

Variable definitions

Explained variable

RD

Enterprise innovation

R&D investment/total assets

Explanatory variables

OCF_sd

Cash flow uncertainty

Standard deviation of net cash flow from operating activities in year t-2 to year t

Adjust the variable

GS

Government subsidies

As a dummy variable, if the previous government subsidy of an enterprise is not 0, then GS is 1. If the enterprise has no government subsidy in the previous period, GS is 0

ES

Executives at stake

Number of shares held by senior executives/total number of shares

Control variables

The SIZE

The enterprise scale

The natural logarithm of the total number of employees in an enterprise

LEV

Asset-liability ratio

Total liabilities at year end/total assets at year end

ROA

Return on total assets

Net profit/total assets

TURN

Total asset turnover

Operating income/total assets

TBQ

Tobin Q value

Market value/total assets

CI

Capital intensity

Net fixed assets/total assets

AF

Analyst focus

The natural log of the number of analysts (teams) who have tracked the company

YEAR

Annual dummy

When the enterprise is in that year, the value is 1; Otherwise it’s 0

IND

Industry dummy

12 industry dummy variables, when the enterprise is in the industry, the value is 1; Otherwise it’s 0