variable name

Variable code

Variable definitions

Explained variable

R & D index 1

Rd

Ln (capitalization of R & D investment of enterprises that year +1)

R & D index 2

Rda

Capitalization of R & D investment of enterprises that year/total assets * 100

Explanatory variables

RMB exchange rate

Rate

Annual nominal exchange rate of RMB against US dollar under the direct quotation method (monthly average)

Whether the company is an exporter

Treat

The company belongs to the export enterprise (experimental group) is defined as 1, belongs to non-exporting enterprises (control group) is defined as 0

“8.11” exchange reform event

Pose

Defined as 1 if “8.11” exchange reform event occurred in the year of 2015 and 2016 and beyond (2015-2016) and otherwise 0 (2011-2014)

If “8.11” and if exporter’s pay by

Treat Pose

Treat*Pose

Control variables

Company Size

Size

Natural logarithm of firm’s total asset size = Ln (total asset value + 1)

Financial leverage

Lev

Enterprise debt ratio = total liabilities/total assets

Business age

Age

Business Age = Year of the Year − Year of Establishment

Nature of property

Soe

The actual controller of the enterprise is the central government or local government, the value is 1, otherwise 0

Profitability

Roe

Enterprise total return on assets = current net profit/end of the net assets

Net cash flow from operating activities

Cfo

Net cash flow generated from operating activities = net cash flow from operating activities/total assets at the end of the period

Product market competition

Hhi

Using Company Revenue to Calculate Industry Annual Herfindahl Index (HHI)

Financing constraints

Fc

Financing constraints = (operating assets − operating liabilities)/total assets at the end of the period

Number of employees

Employee

Number of employees = Ln (number of employees in the enterprise at the year + 1)

Ownership concentration

shrcr1

The largest shareholder of the company shareholding ratio

Export earnings

Export

Export income = Ln (enterprise export income of the year + 1)