Operationalization of variables
| Variables | Abbreviation | Measurement |
|---|---|---|
| Entrepreneurial orientation | – | The sum of the standardized scores for innovativeness, proactiveness, and risk-taking |
| Reverse innovations | – | The measurement of reverse innovations is done through patent information (i.e. number of patents) |
| International performance | – | Overseas revenue intensity = overseas sales revenue/total assets at year-end |
| Firm size | FS | Defined as the natural log of total assets |
| Firm age | Age | Number of years in industry |
| Board size | BS | The number of directors on the board |
| Independent director | ID | The firms will take at least 2 directors as independent directors |
| Tobin’s Q | TQ | Tobin’s Q is the percentage among a physical asset’s market value and its additional value |
| Book to market ratio | BTMA | Book to market ratio of shareholders equity |
| Asset growth | AG | Asset Growth of the company is measured as the change in total assets |
| Return on assets | ROA | Total profit is a percentage of Total Assets |
| Return on equity | ROE | The ratio of total profit and percentage of equity |
| Board meeting | BM | The number of meetings in one-year time |
| CEO duality | DUAL | Dummy variable that equals to 1 if the CEO is working as an executive and 0 otherwise |
| Financial leverage | LEV | The ratio of total debt to the total asset |
| Year and industry | YI | To control the effect of year and industry, we included year and Industry dummies in all regressions |
| Variables | Abbreviation | Measurement |
|---|---|---|
| Entrepreneurial orientation | – | The sum of the standardized scores for innovativeness, proactiveness, and risk-taking |
| Reverse innovations | – | The measurement of reverse innovations is done through patent information (i.e. number of patents) |
| International performance | – | Overseas revenue intensity = overseas sales revenue/total assets at year-end |
| Firm size | FS | Defined as the natural log of total assets |
| Firm age | Age | Number of years in industry |
| Board size | BS | The number of directors on the board |
| Independent director | ID | The firms will take at least 2 directors as independent directors |
| Tobin’s Q | TQ | Tobin’s Q is the percentage among a physical asset’s market value and its additional value |
| Book to market ratio | BTMA | Book to market ratio of shareholders equity |
| Asset growth | AG | Asset Growth of the company is measured as the change in total assets |
| Return on assets | ROA | Total profit is a percentage of Total Assets |
| Return on equity | ROE | The ratio of total profit and percentage of equity |
| Board meeting | BM | The number of meetings in one-year time |
| CEO duality | DUAL | Dummy variable that equals to 1 if the CEO is working as an executive and 0 otherwise |
| Financial leverage | LEV | The ratio of total debt to the total asset |
| Year and industry | YI | To control the effect of year and industry, we included year and Industry dummies in all regressions |
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