Variable name

Explanation

IE1

Innovation efficiency in the first year

IE2

Innovation efficiency in the next two years

IE3

Innovation efficiency in the next three years

Pay gap

Executive team pay gap

Size

Natural logarithm of total assets at the end of the year

Bsize

Natural logarithm of total board

Indepen

Ratio of the number of independent directors to the total number of directors

Leverage

Ratio of total liabilities to total assets at the end of the year

Top1

The ratio of the number of shares held

by the largest shareholder to the total number of shares

Roa

Ratio of net profit to total assets at the end of the year

CF

Ratio of net cash flow from operating activities to total assets at the beginning of the year

Growth

Company growth

SOE

Dummy variable, if the company’s ultimate controller is state-owned, take 1; otherwise, take 0

Dual

Dummy variable, if the chairman and the general manager are the same person take 1; otherwise take 0

Year

Virtual variable

Industry

Virtual variable