Table 1 Definition of variables.
Variable type | Variable name | Variable symbol | Variable definition |
|---|---|---|---|
Explanatory variable | Digital transformation | Digital | Ln (Frequency of Words Related to Digital Transformation + 1) |
Explained variable | Inventory turnover | SCE | Ln [365/(Operating Costs/Average Inventory Balance)] |
Control variables | Size | Size | Ln (Total Asset) |
Asset-Liability Ratio | Leverage | Total Liabilities to Total Assets | |
Profitability | ROA | Net Income to Total Assets | |
Capital Expenditure | Capex | (Cash paid for fixed assets, Intangible Asset and Other Long-Term Assets)/Total Assets | |
Equity Concentration | Equity Top1 | Top One Shareholder Ratio | |
Cash flows from Operating Activities | Cash | Net Cash Flows from Operating Activities/Operating Income | |
Growth Capability | Growth | Revenue Growth Rate | |
Nature of Property | SOE | Value 1 if the Enterprise is a State-Owned Enterprise and 0 Otherwise | |
Gross Margin | Margin | (Operating income—operating costs)/Operating income | |
Supplier Concentration | Supplier Top5 | Top Five Suppliers Purchase Ratio | |
Mediating variables | Management Capabilities | Management Fee | Management Expense Ratio |
External Transaction Costs | Transaction Cost | Sales Expense Ratio | |
Moderating variable | Customer Concentration | Customer Top5 | Top Five Customers Sales Ratio |
