Variable name | Symbol | Variable definitions |
Equity net profit margin | Roe | Equity net profit margin for the year |
Operating margin | Ros | Operating Margin for the Year |
Total factor productivity | Tfp_OP | Total factor productivity calculated by Tfp_OP method |
Accrued earnings management | Em | Adjusted Jones Model Calculation |
Degree of pollution | Treat | 1 for heavy chemical industry, 0 for non-heavy chemical industry |
Strict environmental inspections | Post | 2016-2017 take 1, 2013-2015 take 0 |
Pollution degree * strict environmental inspections | Treat * Post | Pollution degree and strict environmental inspections |
Company size | Size | Natural logarithm of total assets |
Total assets net profit margin | Roa | Net Profit/Total Assets |
Gearing ratio | Lev | Total Liabilities/Total Assets |
Cash Flow | Cfo | Net Operating Cash Flow/Total Assets of Previous Period |
Nature of property right | Soe | The company’s ultimate controller is 1 for the country, otherwise 0 |
Equity concentration | Shrer | The shareholding of the largest shareholder |
Proportion of independent directors | Idrt | Proportion of independent directors to the size of the board |
Age of company | Age | The natural logarithm of company’s age |
Number of employees | Worker | The natural logarithm of the number of employees |
Accounting firm size | Audit | Big4 take 1, otherwise 0 |
Whether to issue additional | So | Dummy variable, take 1 for additional issuance and 0 for no additional issuance. |
Whether to distribute the share | Ro | Dummy variable, take 1 for share placement, 0 for no share placement |
Whether to lose money | loss | The company’s loss for the year is 1, otherwise it is 0 |