Key variable and definitions
| Variable type | Variable name | Variable | Variable definitions |
|---|---|---|---|
| Dependent variable | Number of patent applications | Apply | Natural logarithm of the number of patent applications plus 1 |
| Number of invention patent applications | Apply_I | Natural logarithm of the number of invention patent applications plus 1 | |
| Independent variable | Cross ownership | Cross | Add 1 to the value and take the logarithm of the sum |
| Control variable | Firm Size | Size | Natural logarithm of the total assets at year end |
| Leverage | Lev | Total liabilities/Total assets | |
| Return on Assets | ROA | Net operating income deflated by total assets | |
| Cash Ratio | Cash | Cash and cash equivalents/Total assets at year end | |
| Equity Concentration | Share | The largest shareholder’s shareholding | |
| Independent Directors ratio | IND | Number of independent directors/Total number of directors | |
| Growth Rate | Growth | (current operating income – previous operating income)/(previous operating income) | |
| Firm Age | Age | Natural logarithm of the company's establishment years plus 1 | |
| Fixed Assets Ratio | PPE | Non-current assets at the end of the year/total assets at the end of the yea | |
| Separation Rate of Two Rights | Separation | The difference between the control and ownership of the listed company owned by the ultimate controller | |
| State ownership | SOE | Dummy variable, it equals 1 if the ultimate controller of the listed firm is state-owned, and 0 otherwise | |
| Market Value to Book Ratio | Tobin_q | Market value to book ratio | |
| Year | Year | Year Fixed Effect: Fiscal year from 1st January to 31st December | |
| Industry | Industry | Industry fixed effect: CSRC issued Guidelines for the Industry Classification of Listed Companies (2012 Revision). To ensure comparability of data, we make manual adjustments to the industry classification of listed companies prior to 2012 in accordance with 2012 industry classification standards |
| Variable type | Variable name | Variable | Variable definitions |
|---|---|---|---|
| Dependent variable | Number of patent applications | Natural logarithm of the number of patent applications plus 1 | |
| Number of invention patent applications | Natural logarithm of the number of invention patent applications plus 1 | ||
| Independent variable | Cross ownership | Add 1 to the value and take the logarithm of the sum | |
| Control variable | Firm Size | Natural logarithm of the total assets at year end | |
| Leverage | Total liabilities/Total assets | ||
| Return on Assets | Net operating income deflated by total assets | ||
| Cash Ratio | Cash and cash equivalents/Total assets at year end | ||
| Equity Concentration | The largest shareholder’s shareholding | ||
| Independent Directors ratio | Number of independent directors/Total number of directors | ||
| Growth Rate | (current operating income – previous operating income)/(previous operating income) | ||
| Firm Age | Natural logarithm of the company's establishment years plus 1 | ||
| Fixed Assets Ratio | Non-current assets at the end of the year/total assets at the end of the yea | ||
| Separation Rate of Two Rights | The difference between the control and ownership of the listed company owned by the ultimate controller | ||
| State ownership | Dummy variable, it equals 1 if the ultimate controller of the listed firm is state-owned, and 0 otherwise | ||
| Market Value to Book Ratio | Market value to book ratio | ||
| Year | Year Fixed Effect: Fiscal year from 1st January to 31st December | ||
| Industry | Industry fixed effect: CSRC issued Guidelines for the Industry Classification of Listed Companies (2012 Revision). To ensure comparability of data, we make manual adjustments to the industry classification of listed companies prior to 2012 in accordance with 2012 industry classification standards |
Source(s): Authors' own work