Variable | Definitions |

lnSG & A | Log(SG & A |

lnRev | Log(Rev |

DEC | Equal to 1 when sales in year t are smaller than sales in year t − 1, and 0 otherwise |

PEP | Equals 1 if implement private equity placement in year t or year t + 1, and 0 otherwise |

SOE | Equals 1 if owned by the state, and 0 otherwise |

Big4 | Equals 1 if audited by the big-four, and 0 otherwise |

SuccDecre | Equals 1 if sales have decreased in two consecutive years, and 0 otherwise |

GdpGrowth | Growth in GDP in year t |

EI | the ratio of total number of employees over sales(million) |

AI | the ratio of total assets over sales |