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