Variable | Variable defined |

Sales | Sales revenue |

Labor cost | Total employee compensation |

ΔLn labor cost | the change in the natural logarithm of labor cost Δln labor cost = Ln(labor cost i, t) − Ln(labor cost i, t−1); |

ΔLn sales | the change in the natural logarithm of sales revenue; Δln sales = Ln(sales i, t) − Ln(sales i, t−1); |

LP | the value of 1 when year is more than 2008,and 0 otherwise. |

Sec | the value of 1 when sales revenue decreases between periods t−2 and t−1, and 0 otherwise. |

EI | in the natural logarithm of labor intensity; = Ln(100,000 × total number of employee/sales revenue); |

Growth rate | Median operating income growth of all enterprises in the same industry; |

Size | the natural logarithm of total assets at the end of the year t |

Lev | total debt at the end of the year t/total assets at the end of the year t |

Lshare | the equity ratio of the largest shareholder |

Dual | the value of 0 when chairman and general manager are one person, and 1 otherwise |

Ind | In accordance with the Commission in 2012 industry classification, the manufacturing industry to take the first two code, while the other industry to get the first code |