Table 3 Variables and definitions... | Emerald Publishing

Table 3

Variables and definitions

Variables	Definition and measurement
ΔLnpatent	The logarithm of patent applications in the second year following the acquisition minus the logarithm of patent applications in the year prior to the acquisition In China, patent applications are disaggregated into invention, utility, and design types. Respectively, we use the logarithm of each type of patent applications in the second year following the acquisition minus the logarithm of this type of patent applications, i.e. ΔLnpatent1, ΔLnpatent2, and ΔLnpatent3 to represent changes in these three types of patent applications
Reform	Dummy variable, equals to 1 if a private firm acquires state ownership in the year, otherwise 0
POL	Dummy variable, equals to 1 if the CEO or chairman has served as a Communist Party, government, or military officer, has been a People’s Congress, or the Chinese People’s Political Consultative Conference member, otherwise it is 0
BC	Dummy variable, equals to 1 the firm holds a bank’s shares, or the bank holds the firm’s shares, any firm executive has a banking background, or a bank executive is also firm executive, otherwise 0
lnage	Natural logarithm of the company’s listing years
Lnsize	Natural logarithm of the company’s total assets
Growth	(Operating income of the current period minus operating income of the previous period) divided by operating income of the previous period
Power	Operating income divided by operating cost
RoA	Net profit divided by net assets
Lev	Total liabilities divided by total assets
Indro	The ratio of independent directors to the board of directors
Lnboard	The total number of board members takes the natural logarithm
Ratio	Percentage of acquired shares of SOEs

Variables	Definition and measurement
ΔLnpatent	The logarithm of patent applications in the second year following the acquisition minus the logarithm of patent applications in the year prior to the acquisitionIn China, patent applications are disaggregated into invention, utility, and design types. Respectively, we use the logarithm of each type of patent applications in the second year following the acquisition minus the logarithm of this type of patent applications, i.e. ΔLnpatent1, ΔLnpatent2, and ΔLnpatent3 to represent changes in these three types of patent applications
Reform	Dummy variable, equals to 1 if a private firm acquires state ownership in the year, otherwise 0
POL	Dummy variable, equals to 1 if the CEO or chairman has served as a Communist Party, government, or military officer, has been a People’s Congress, or the Chinese People’s Political Consultative Conference member, otherwise it is 0
BC	Dummy variable, equals to 1 the firm holds a bank’s shares, or the bank holds the firm’s shares, any firm executive has a banking background, or a bank executive is also firm executive, otherwise 0
lnage	Natural logarithm of the company’s listing years
Lnsize	Natural logarithm of the company’s total assets
Growth	(Operating income of the current period minus operating income of the previous period) divided by operating income of the previous period
Power	Operating income divided by operating cost
RoA	Net profit divided by net assets
Lev	Total liabilities divided by total assets
Indro	The ratio of independent directors to the board of directors
Lnboard	The total number of board members takes the natural logarithm
Ratio	Percentage of acquired shares of SOEs

Note(s): Table by authors