| Variable | Symbol | Definition and Calculation |
| Leverage | LEV | (long-term borrowing + short-term borrowing + bonds payable + long-term debt due within one year)/(total book assets) |
| Low leverage | LOWD | equal to 1 if the leverage is equal or lower 5%, otherwise is 0 |
| Long debt ratio | LDEBT | (long-term borrowing + bonds payable)/(book assets) |
| Firm age | FAGE | all the year numbers after the firm build |
| CEO age | AGE | CEO age |
| CEO compensation | COMP | Log(CEO cash remuneration) |
| CEO equity | EHOLD | (the number of CEO equity)/(total firm equity number) |
| First shareholder’s equity | FHOLD | (equity number of the first shareholder)/(total firm equity number) |
| Firm size | SIZE | Log(total book assets) |
| Profitability | ROA | (earnings after depreciation, interest, and taxes)/(total book assets) |
| Growth | Q | (total market assets)/(total book assets) |
| Collateral | TANGI | (net of fixed asset and construction in process)/(total book assets) |
| Cash holding capital expenditure | CASH INVEST | (monetary capital)/(total book assets) (the capital which buy the fixed assets)/(total book assets) |