| Variable name | Variable definitions |
| WD | Impairment of assets equals (increase in current asset impairment provision―current asset impairment provision reversed or resold)/total assets at the beginning of the period |
| Short | Is it a 0 - 1 variable for short selling securities, if the company can sell short in a certain year, take 1; otherwise, take 0 |
| Roa | Company profitability, equal to net profit/total assets at the end of the period |
| Growth | The growth of the company is equal to the growth rate of the main business income |
| IndΔRoa | The median of the current industry Roa minus the median of the previous industry Roa |
| IndGrowth | The median of the company’s industry Growth |
| Mshare | When the management holds the company’s shares, the value of Mshare is 1, otherwise it is 0. |
| Lev | The company’s debt level is equal to the total liabilities at the end of the period/total assets at the end of the period |
| Size | The size of the company is equal to the natural logarithm of the total assets at the end of the year |
| KS | When the company’s current ROE t (equal to the current net profit divided by the average balance of the owner’s equity at the beginning of the period) is negative, the KS takes the value 1, otherwise it is 0. |
| PH | When the company’s ROE exceeds the 3/4 quantile of the ROE of all sample companies, and the values of KS, NK, WL, PG and BG are 0, the PH value is 1, otherwise it is 0. |
| BG | When the company changes the chairman or general manager in the current period, and the values of KS, NK, WL and PG are all 0, the value of BG is 1, otherwise it is 0. |
| NK | When ROEt-1 < 0 and ROEt > 0, NK takes a value of 1, otherwise it is 0. |
| WL | When ROEt Î [0, 0.02] and NK = 0, WL takes the value 1, otherwise it is 0. |
| PG | When ROEt Î [0.06, 0.08] and NK = 0, PG takes the value 1, otherwise it is 0. |
| Log (MV) | The natural logarithm of the market value of the enterprise’s circulation |
| Turnover | Annual average of stock turnover |
| Volatility | Stock volatility is equal to the standard deviation of the company’s stock daily return rate to the market daily return regression residual term |
| Age | The age at which the company is listed is defined as “the natural logarithm of (the number of years of listing +1)” |
| αt | Annual dummy variable, controlling annual fixed effects |
| αi | Company dummy variable, controlling company fixed effect |