Table A1. Variable definitions Variable... | Emerald Publishing

Table A1.

Variable definitions

Variable	Definition
CoD	The cost of debt, which is equal to the financing expense, including interest expense, exchange loss and service fees, divided by the total liabilities
IPO	A dummy variable equal to one if the firm has been listed
Leverage	Total liabilities divided by the total assets
Size	The natural logarithm of the total assets
Age	The natural logarithm of the firm age
Current ratio	Current assets divided by the total assets
ROA	Profit, scaled by the total assets
Fixed assets	Fixed assets, scaled by the total assets
SOE	A dummy variable equal to One if the firm is a state-owned enterprise
IPO likelihood	An instrumental variable reflecting the likelihood that that a firm receives approval for its IPO application, which is defined as: ${I P O L i k e l i h o o d}_{i t} = \{\begin{array}{l} Approval Rate in the year of observations if {I P O}_{i t} = 0 \\ Approval Rate in the year of {I P O}_{i t} = 1 \end{array}$
Employee	The natural logarithm of the number of employees
R&D expense	The R&D expense, scaled by the total sales
Higher education	The number of employees with bachelor’s or postgraduate degrees, scaled by the number of total employees

Variable	Definition
CoD	The cost of debt, which is equal to the financing expense, including interest expense, exchange loss and service fees, divided by the total liabilities
IPO	A dummy variable equal to one if the firm has been listed
Leverage	Total liabilities divided by the total assets
Size	The natural logarithm of the total assets
Age	The natural logarithm of the firm age
Current ratio	Current assets divided by the total assets
ROA	Profit, scaled by the total assets
Fixed assets	Fixed assets, scaled by the total assets
SOE	A dummy variable equal to One if the firm is a state-owned enterprise
IPO likelihood	An instrumental variable reflecting the likelihood that that a firm receives approval for its IPO application, which is defined as: ${I P O L i k e l i h o o d}_{i t} = \{\begin{array}{l} Approval Rate in the year of observations if {I P O}_{i t} = 0 \\ Approval Rate in the year of {I P O}_{i t} = 1 \end{array}$
Employee	The natural logarithm of the number of employees
R&D expense	The R&D expense, scaled by the total sales
Higher education	The number of employees with bachelor’s or postgraduate degrees, scaled by the number of total employees