Control Variables | Definition |

Polic | Dumb variable, if one of the company’s executives has been or is now a party representative, NPC deputy or CPPCC member, then Polic is 1, otherwise is 0. |

Lev | Liability/Asset * 100 |

First | The company’s largest shareholder shareholding ratio |

Lnasset | The natural log of total assets |

Lngdp | The natural log of The GDP per capita of the region takes logs |

Industry | Dumb variable, if the company is in this industry, then Industry is 1, otherwise is 0. |

Year | Dumb variable, if the company is in this year, then Year is 1, otherwise is 0. |