Variable |
| Definition |
Executive Compensation | LnCEOpay | Natural log of total compensation of the top three executives |
Performance | LnNI | Natural log of net income |
| LnOP | Natural log of operating profit |
Foreign Experience | FE | Equal to 1 if there is at least one director with foreign experience in the board |
Size | LnSize | Natural log of operating income |
Leverage | Leverage | The ratio of long-term debt to total asset. |
Ownership Concentration | Lshare | The portion of shares hold by the largest shareholder |
Duality | Duality | Equal to 1 if a firm’s CEO also serves as chairman of boar |
Board independence | Indd | The percentage of board members who are outsiders |
Region | Central | Equal to 1 for companies registered in the central China |
| West | Equal to 1 for companies registered in the western China |
Industry | Ind | Industry dummy variables |
Year | Year | Year dummy variables |