Table 3

Selection of the final sample for regression analysis

Number of observations
Observations in the initial sample in Table 1 17,364
less 
Observations with total liability greater than total asset388
Observations with extreme values2,319
Observations with missing values of any variable in the regression analysis3,547
Final sample11,110

Note(s): This table presents the process of selecting the final sample for regression analysis. The initial sample described in Table 1 includes Chinese A-share firms listed in the Shanghai and Shenzhen Stock Exchanges in the non-financial industries and excludes the firm years that do not report positive total R&D expenditures in the annual financial reports. We obtain the final sample by removing the observations with the total liabilities being greater than total assets, with extreme values and/or missing values

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