CGES

=

The corporate governance evaluation system, the TEJ database divides the results of the corporate governance evaluation system (CGES) into eight levels, which are: top 5%, 6% to 20%, 21% to 35%, 36% to 50%, 51% to 65%, 66% to 80%, 81% to 100%. Insufficient data that are not included in the evaluation have been replaced in this research with scores of 8 to 1, with 8 point for the top 5%, 7 point for 6% to 20%, 6 point for 21% to 35%, and so on. 81% to 100% are given 2 point and companies with insufficient data that not included in the evaluation are given 1 point;

DME

=

the natural log of the difference between senior manager compensation and salaries of full-time employees in non-management positions (Huang, 2020) ;

SIZE

=

the natural log of total assets;

DE

=

debt ratio;

ROA

=

return on assets;

DP

=

dividend payout ratio;

BHold

=

the board of directors’ stock holding ratio;

MHold

=

the manager shareholding ratio;

PDM

=

the proportion of directors serving as managers;

AGE

age of company establishment;

Foreign

the holdings of foreign investors;

Public

government agencies holding shares;

ε

residual term.