Table I

Variable definitions

VariablesVariable namesDefinitions
INVCorporate investmentCapital expenditure deflated by total assets
TOBTobin’s QMarket value of equity plus book value of debt deflated by total assets
INDBoard independenceFraction of independent directors in the board
ROAFirm profitabilityReturn on assets
LEVFinancial leverageTotal liabilities deflated by total assets
CASCash holdingsCash and equivalents deflated by total assets
SIZFirm sizeNatural logarithm of total assets
SOEState-controlled firmA dummy variable assigned 1 if at least 50% of shares are held by government agencies and 0 otherwise

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