Type

Variable Name

Proxy and description

Dependent variable

P_t

earnings in year t

Independent variable

BVPS_t

earning excluding non-recurring profit and loss in year t.

Independent variable

COEPS_t

the earnings per share after deducting non-recurring profit and loss (per share) of the firm at time t.

Independent variable

EIEPS_t

the non-recurring profit and loss (per share) at time t

Dummy Variable

D3

D3 is a dummy variable. When COEPS < 0, D3 = 1; otherwise, D3 = 0.

Dummy Variable

D4

D4 is a dummy variable. When EIEPS < 0, D3 = 1; otherwise, D3 = 0.

Control variable

LEV_t

Leverage, total assets scaled by total debt

Control variable

GROW_t

GROW_t representing the growth opportunity of the company. Here I choose Tobin Q as the proxy of growth.

Control variable

OWN

OWN is a dummy variable. When the company is run by the government, OWN = 1; otherwise, OWN = 0

Control variable

COVID

COVID is a dummy variable. When the date of the listing date is after the outbreak of COVID-19, COVID = 1; otherwise, COVID = 0.

Control variable

AGE_t

AGE is the age of the company, which equals the year since company was founded.