Variable type	Variable symbol	Variable name	Variable definition and description
Dependent variable	Over-inv	overinvestment	Equation (2)
Dependent variable	Under-inv	underinvestment	Equation (3)
Independent variable	Distort 1	credit distort 1	λ/α, λ means the proportion of state-owned listed company credit fund size in total Listed company fund capital size, and α means the proportion of state-owned listed company gross output in total listed company gross output (output could be replaced by prime business revenues).
	Distort 2	credit distort 2	λ/δ, δ means the proportion of state-owned company employees in total listed A share companies.
	Distort 3	credit distort 3	λ/θ, θ means the proportion of listed A share non state-owned company credit fund size in total Listed company fund capital size.
	Distort 4	credit distort 4	λ means the proportion of state-owned listed company credit fund size in total Listed company fund capital size.
	SOE	Corporate property	1 means state-owned company and 0 means non state-owned company
	FCF	Free cash flow	Free cash flow = (cash flow net amount caused by corporate business operation activities―due depreciation and amortization)/total assets in the beginning of the year-model (1)’s predicted expected newly increased investment. When the indicator is positive.
	SCF	Internal cash flow gap	Internal cash flow gap = (cash flow net amount caused by corporate business operation activities ? due depreciation and amortization)/total assets in the beginning of the year-model (1)’s predicted expected newly increased investment. When the indicator is negative, the absolute value should bechosen.
Control variables	Top1	Equity concentration degree	shareholding ratio of the 1st majority shareholder
	Top9_1	Equity balance degree	shareholding ratio of the 2nd-10th majority shareholder/shareholding ratio of the 1st majority shareholder
	Tpay	Executive compensation	natural logarithm of top three total executive compensation