Variable definition
| Variables | Definition |
|---|---|
| CU | Capacity utilization is defined as the ratio of the actual output to the optimal output |
| DigitalW | The ratio of the total number of digitization vocabularies in the text of MD&A to the total vocabulary of MD&A |
| DigitalS | The ratio of the total number of sentences containing digitization vocabulary to the total number of sentences in the text of MD&A |
| Size | The natural logarithm of total assets |
| Leverage | The ratio of book value of total debt to total assets |
| ROA | The return on assets, defined as the ratio of earnings to total assets |
| CFO | The ratio of cash flow from operations to total assets |
| TFP | Total factor productivity estimated using the LP approach |
| Employee | The natural logarithm of the total number of employees |
| Age | The natural log of the number of years since a firm goes public |
| BSize | The natural logarithm of the total number of independent directors |
| IndR | The ratio of independent directors to total directors |
| SH1 | The ratio of shares held by the largest shareholder to the total number of shares |
| SOE | SOE equals one if a firm is an SOE, and zero otherwise |
| HHI | Herfindahl index variables based on firms' sales revenues |
| Variables | Definition |
|---|---|
| Capacity utilization is defined as the ratio of the actual output to the optimal output | |
| The ratio of the total number of digitization vocabularies in the text of MD&A to the total vocabulary of MD&A | |
| The ratio of the total number of sentences containing digitization vocabulary to the total number of sentences in the text of MD&A | |
| The natural logarithm of total assets | |
| The ratio of book value of total debt to total assets | |
| The return on assets, defined as the ratio of earnings to total assets | |
| The ratio of cash flow from operations to total assets | |
| Total factor productivity estimated using the LP approach | |
| The natural logarithm of the total number of employees | |
| The natural log of the number of years since a firm goes public | |
| The natural logarithm of the total number of independent directors | |
| The ratio of independent directors to total directors | |
| 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 | |
| Herfindahl index variables based on firms' sales revenues |
Source(s): Authors’ own work
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