| Variable nature | Variable name | Variable symbol | Variable definitions |
| Explained variable | Equity compensation incentive | Incentive | See formula (1) |
| Explanatory variables | Executive overconfidence | OC | Profit forecasting method |
| Company level Control variable | Separation of two posts | Separation | Take 1 when the chairman and general manager are not the same person, otherwise take 0 |
| Growth | Growth | (Main income of the current period − main income of the previous period)/main income of the previous period | |
| R & D intensity | Research | R & D expenses/main business income | |
| Return on total assets | ROA | Return on total assets, total profit/total assets | |
| Market ratio | PB | Total market value/net assets | |
| Stock return | Return | Annual return on individual stocks | |
| Company market value | Value | Natural logarithm of the company’s market capitalization | |
| Company age | Firm age | Number of years from the company’s listing to the statistical deadline | |
| Fixed assets | Fixasset | The natural logarithm of the company’s fixed assets | |
| Financial leverage | Lev | Asset-liability ratio, total liabilities/total assets | |
| Nature of property | State | The value is 1 when the company is a central/local state-owned enterprise, otherwise it is 0. | |
| Equity concentration | COCEN | Proportion of the top ten shareholders of the company | |
| Executive level Control variable | Average age of executives | Age | Average age of all senior managers |
| Executive average term | Tenure | Average term of all senior management |