Variable definition
| Symbol | Name | Definition |
|---|---|---|
| DM | Corporate debt maturity | Long-term debt/total debt |
| DM_new | Corporate debt maturity | Non-current liabilities/total liabilities |
| Open | Capital market liberalization | If the firm enters the trading list of the SHSHC, it takes the value of one, and zero otherwise |
| Size | Firm size | The natural logarithm of total assets |
| ROA | Return on assets | Net profit/average total assets |
| Growth | Growth rate | (Revenues of year t − revenues of year t–1)/revenues of year t–1 |
| Lev | Leverage | Total liabilities/total assets |
| AM | Asset duration | Fixed assets/total assets |
| CFO | Cash flows | Cash flows from operating activities/total assets |
| Top1 | Large shareholder ownership | The percentage of shares held by the largest shareholder |
| Dual | Duality of chairman and CEO | If the chairman and the CEO are the same person, it takes the value of one, and zero otherwise |
| QFII | QFII ownership | The percentage of shares held by QFII investors |
| Mshr | Management ownership | The percentage of shares held by firm management |
| Big4 | Big 4 | If the firm is audited by a Big 4 firm, it takes the value of one, and zero otherwise |
| Grade | Information quality | The information disclosure grade by the Shanghai Stock Exchange and the Shenzhen Stock Exchange; the grades include A, B, C and D, indicating “excellent,” “good,” “qualified” and “unqualified” respectively, and are assigned corresponding values of 4, 3, 2 and 1 |
| Turnover | Asset turnover | Operating income/average total assets |
| Symbol | Name | Definition |
|---|---|---|
| Corporate debt maturity | Long-term debt/total debt | |
| Corporate debt maturity | Non-current liabilities/total liabilities | |
| Capital market liberalization | If the firm enters the trading list of the SHSHC, it takes the value of one, and zero otherwise | |
| Size | Firm size | The natural logarithm of total assets |
| Return on assets | Net profit/average total assets | |
| Growth rate | (Revenues of year | |
| Leverage | Total liabilities/total assets | |
| Asset duration | Fixed assets/total assets | |
| Cash flows | Cash flows from operating activities/total assets | |
| Large shareholder ownership | The percentage of shares held by the largest shareholder | |
| Duality of chairman and CEO | If the chairman and the CEO are the same person, it takes the value of one, and zero otherwise | |
| QFII ownership | The percentage of shares held by QFII investors | |
| Management ownership | The percentage of shares held by firm management | |
| Big 4 | If the firm is audited by a Big 4 firm, it takes the value of one, and zero otherwise | |
| Information quality | The information disclosure grade by the Shanghai Stock Exchange and the Shenzhen Stock Exchange; the grades include A, B, C and D, indicating “excellent,” “good,” “qualified” and “unqualified” respectively, and are assigned corresponding values of 4, 3, 2 and 1 | |
| Asset turnover | Operating income/average total assets |
Source(s): Table by authors
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