Table 2 Variable definition.
From: Non-financial information farsightedness and capital market information efficiency
Variable Names | Definition |
|---|---|
SYNCH | Individual stocks utilize the reinvestment return rate, accounting for cash dividends, whereas markets and industries employ the current circulating market value weighted average method to compute stock price synchronicity. |
SYNCH_2 | Individual equities, markets, and sectors alike employ the return rate incorporating reinvestment of cash dividends, whereas markets and sectors utilize the total market value weighted average method to compute stock price synchronicity. |
Nonfinancial_farsightedness | Using the Lexical Monitoring (LM) lexicon, the proportion of the difference in the number of affirmative and negative words in non-financial information to the sum of the two was calculated. |
Nonfinancial_farsightedness_2 | Using a thesaurus from National Taiwan University, the difference in the number of affirmatives and negatives in non-financial information was calculated as a proportion of the sum of the two. |
Nonfinancial_farsightedness_3 | Using the LM dictionary, the ratio of the gap between the number of affirmative words minus the number of negative words in the non-financial information and the total number of words in the annual report was calculated. |
Follow | Augmenting the total count of individuals monitored by analysts for each stock annually by 1 and then applying the natural logarithm. |
Forecast_Dispersion | The forecast dispersion percentage, calculated as the quotient of the standard deviation of analyst earnings forecasts divided by the stock price at the inception of the year. |
Audit_OP | In the audit opinion of enterprise I in year t, a standard unqualified opinion is designated as 1; otherwise, it is assigned a value of 0. |
Fin | The aggregate of traded financial assets, derivative financial assets, available-for-sale financial assets, held-to-maturity investments, net loans and advances, and investment real estate, divided by the total assets. |
Firm Level | |
VOL | The stock turnover rate for enterprise I in year t is calculated based on the number of outstanding shares. |
Lev | Leverage is computed as the ratio of total liabilities to total assets. |
Size | The natural logarithm of the total assets of the firm at the end of the year. |
Roa | Net profit divided by the average total assets. |
Book_to_Market | Book value per share and market value per share. |
Growth | The revenue growth rate of firm i in the preceding year. |
Age | The age of the listed company i. |
Roe | Net profit divided by the average net assets. |
Big4 | Equal to 1 if firm i is audited by one of the international Big 4 audit firms, and 0 otherwise. |
Management Level | |
InsInvestor | The institutional investors’ ownership percentage in shares. |
Top1 | The ownership ratio of the largest shareholder of enterprise I in year t. |
Shrcr | The shareholding concentration of enterprise I in year t, determined by the shareholding ratio of the top ten shareholders. |
Board | The logarithmically transformed size (number) of the board of directors of enterprise I in year t. |
Dual | If the chairman of the company I is also the managing director, it takes the value of 1, otherwise 0. |
Industry | A binary indicator variable, set to 1 if year t falls within the specified year range, and 0 otherwise. |
Year | A binary indicator variable, set to 1 if company i belongs to the designated industry, and 0 otherwise. |
