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| Variables | Symbol | Variable definition |
| Explained variable | Bank risk-taking | RISK | Z-score |
| Explaining variable | Managerial Optimism | OP | If the sum of the top three managers’ compensation/the sum of all managers’ compensation over average op = 1, else op = 0 |
| Control variables | Capital adequacy | CAR | Total capital/weighted risk assets |
| Liquidity | DL | Deposit-loan ratio = Sum of deposit/sum of loan | |
| Provisioning coverage rates | PCR | Actual provision for loan loss/non-performing loan | |
| Cost-income ratio | CIR | Business and management expenses/operating income | |
| Non-interest income ratio | NIR | Non-interest income ratio = non-interest income/Total interest income | |
| Net interest margin | NIM | Net interest margin= (interest income − interest expense)/average interest-earning assets | |
| Scale | LNA | LNA = Ln(Total Assert) | |
| Market structure | CR5 | Total loans of the five state-owned banks/balance of loans of national financial institutions | |
| Macroeconomic variable | RGDP | GDP growth rate | |
| RM2 | M2 growth rate |