INV | Investing level | (Cash payments to purchase property, plant, and equipment, intangible assets and other long-term assets in year t ? cash recovered from disposing property, plant, and equipment, intangible assets and other long-term assets in year t)/total assets |

Growth | Growth | Tobin’s Q of year t − 1 = market value/book value |

Lev | Leverage level | Assets-liability ratio at the end of year t − 1 |

Cash | Cash level | (Cash at the end of year t − 1 + short-term investment and trading financial asset at the end of year t − 1)/total assets at the end of year t − 1 |

Age | Listed years | The natural logarithm of the corporation’s age of listing at the end of year t − 1 |

Size | Size | The natural logarithm of the corporation’s total assets at the end of year t − 1 |

Ret | Stock returns | Corporation’s stock returns in year t without cash dividends reinvestment |

INV | Investing level | (Cash payments to purchase property, plant, and equipment, intangible assets and other long-term assets in year t − 1 ? cash recovered from disposing property, plant, and equipment, intangible assets and other long-term assets in year t − 1)/total assets at the end of year t − 1 |

Industry | Industry | 20 dummy variables in total, based on the Industry Classification Standard from China Securities Regulatory Commission |

Year | Year | 6 dummy variables in total |

Overinv | Overinvestment | Regression residual from model 1 |

Fcf | Free cash flow | Net income + interest cost + non-cash payment − operating capital added − capital payment |

Fincf | Financial cash flow | Net cash flow from financial activities in year t/total assets at the end of the year t − 1 |

ID | Number of independent directors | Number of independent directors in year t |

Exp | Management expenses ratio | Management expenses in year t/total assets in year t |

EVA | Timing of EVA implementation | =1 if the corporation has implemented the EVA performance appraisal. =0 if else. |

TQ | Sample group by growth | =1 if the corporation’s Tobin’s Q Value was larger than the median; =0 if the corporation’s Tobin’s Q Value was less than the median. |