Variable Type | Variable Symbol | Definition |

Dependent variable | INS | Institutional investor’s shareholding ratio, data from WIND database |

Independent variable | CSR Risk | Corporate social responsibility risk, data from RepRisk database |

Control variable | SIZE | Company size, natural logarithm of total assets |

LEV | Financial leverage, liabilities divided by assets | |

State | Dummy variable, when the actual controller of the enterprise is set to 1 for the state-owned unit, otherwise 0 | |

ROA | Return on total assets, annual net profit divided by total assets at the end of the year | |

Growth | Operating income growth rate, the current operating income minus the operating income of the previous period, and then divided by the operating income of the previous period | |

TRSHARE | Natural logarithm of the number of shares outstanding at the end of the year | |

TOP | Equity concentration, the sum of the company’s largest shareholder’s shareholding ratio | |

TAMVB | Book value ratio, total assets divided by market value | |

BPS | Net assets per share, net assets divided by the number of ordinary shares at the end of the period | |

Mortgage | Fixed assets ratio, fixed assets divided by total assets | |

VOL | Annual turnover of corporate stocks | |

EXCP | Executive compensation, the natural logarithm of the top 3 executive compensation | |

IDB | Independent director ratio, the number of independent directors divided by the number of directors | |

GCFO | Net flow growth rate from operating activities | |

SC | Selling expenses as a percentage of assets, selling expenses divided by total assets | |

JNN | Shareholding ratio of the Supervisory Board, divided by the total number of shares held by the Supervisory Board | |

ROWC | Working capital turnover, operating income divided by average working capital | |

Market | Marketization index, the data comes from “China’s Marketization Index Report by Province” | |

WCLRat | Working capital to borrowing ratio, working capital divided by total borrowings |