Table 1 Definition and description of control variables.
Variable type | Variable symbol | Definition and description |
|---|---|---|
Dependent variable | Dtp | ROA and Score entropy weights sum |
Independent variable | Dig | Digital Transformation Index |
Mediating variable | Salary | Natural logarithm of total management compensation |
Mediating variable | Analyst | Analysts’ focus on the natural logarithm |
Control variables | Size | Natural logarithm of total assets at the end of the period |
Lev | Ratio of total liabilities to total assets | |
Growth | Ratio of operating revenue growth to total operating revenue of the previous year | |
Indep | Ratio of Independent Directors to Total Board Members | |
Cashflow | Ratio of Net Cash Flow from Operating Activities to Current Liabilities at the End of the Period | |
Dual | The chairman and general manager are assigned a value of 1 for the same person; otherwise, it is 0. | |
TobinQ | Market value of the firm/replacement cost of the firm’s assets | |
ListAge | Natural logarithm of the listing duration | |
Big4 | 1 if audited by a Big 4 audit firm, 0 otherwise | |
Opinion | Standard audit opinion takes the value of 1, others 0 | |
Year | Annual dummy variable | |
Industry | Industry dummy variable |
