Table 1 Variable definitions and calculation methods.
Variable | Definition | Calculation methods |
---|---|---|
INV | Investment expenditure | Fixed assets, intangible assets, and other long-term assets/total assets |
RD | Innovation input | R&D expenditure/total assets |
LnPAT | Innovation output | The logarithm of invention patents |
SF | Transaction-oriented financial assets | Transactional financial assets + wealth management and trust products |
SF1 | Transactional financial assets | Financial assets for trading, derivative financial assets, net short-term investment, net financial assets available for sale, net held-to-maturity investment, and net long-term debt investment. |
SF2 | Wealth management and trust products | Manually sorting out the details of “other liquid assets” in the notes to firms’ financial statements |
RISK | Risk-taking level | The standard deviation of the fluctuation of ROA after industry annual adjustment for three consecutive years |
SIZE | Firm size | The natural logarithm of total assets of firms |
DBR | Asset–liability ratio | Total liabilities/total assets |
EBIT | Firm profitability level | Net profit/total assets |
TOBIN’Q | Firm growth ability | Market value of total assets/ book value of total assets |
AM | Net cash flow from operations | Net cash flow from business activities/total assets |
AGE | Firm age | The natural logarithm of firms’ age |
CONC | Ownership concentration level | The shareholding ratio of the top three shareholders |
INDUSTRY | Dummy variable | The classification of Industry follows the Guidelines on Industry Classification of Listed firms issued by China Securities Regulatory Commission (CSRC) in 2012. The manufacturing industry takes the first two digits of industry codes and the remaining takes the next digit of industry codes. After excluding industries with less than 30 firms’ data, 18 industries remained. |
YEAR | Dummy variable | There are 10 YRAR variables. |