Variable types | The name of variables | Variable symbols | Variable definition and explanation |
The explained variables | R&D investment | R&D | (R&D expenditure + development expenditure)/total assets at the beginning period |
The explaining variables | Operating cash flow | CF | (The net cash inflows produced by operating activities)/total assets at the beginning period |
Internal operating cash flow (governmental subsidies has been eliminated) | CF_G | (The net cash inflows produced by operating activities-the cash inflows produced by governmental subsidies)/total assets at the beginning period | |
Governmental subsidies | Gov | (The cash inflows produced by governmental subsidies)/total assets at the beginning period | |
Debt financing | Debt | (The short-term debt variation amount + the variation amount of bonds payable)/total assets at the beginning period | |
Equity financing | Equ | The cash received by absorbing equity investment/total assets at the beginning period | |
The variation of cash in hold. | Cashch | The variation amount of monetary capital/total assets at the beginning period | |
Control variables | corporations’ investment chances | Q | The current Tobin Q value of corporations = (stake market capitalization in the end of period + total assets in the end of period)/total assets in the end of period Among them, the net asset value per share of market capitalization of non-circulating stocks in the end of period should be multiplied by the amount of non-circulating stocks in the end of period |
growth | S | increase rate of business revenue = (the current business revenue - the business revenue of last period)/the business revenue of last period | |
Debt to asset ratio | Lev | total liability in the end of period/total assets in the end of period |