Note(s): This table reports summary statistics for the variables used in our baseline regression. CU, or Capacity utilization is defined as the ratio of the actual output to the optimal output. DigitalW is the ratio of the total number of digitization vocabulary in the text of MD&A to the total vocabulary of MD&A. DigitalS is the ratio of the total number of sentences containing digitization vocabulary to the total number of sentences in the text of MD&A. Size is the natural logarithm of total assets. Leverage is the ratio of book value of total debt to total assets. ROA is the return on assets, defined as the ratio of earnings to total assets. CFO is the ratio of cash flow from operations to total assets. TFP is the total factor productivity estimated by the LP approach. Employee is the natural logarithm of the total number of employees. Age is the natural log of the number of years since a firm went public. BSize is the natural logarithm of the total number of independent directors. IndR is the ratio of independent directors to total directors. SH1 is the ratio of shares held by the largest shareholder to the total number of shares. SOE equals one if a firm is an SOE and zero otherwise. HHI is a Herfindahl index variable based on firms' sales revenues

Source(s): Authors’ own work