Table 1. Variable definitions Variable... | Emerald Publishing

Table 1.

Variable definitions

Variable type	Variable	Symbol	Definition and measurement
Dependent variables	R&D investment	R&D	The ratio of R&D expenditure to operating revenue of focal firms in the current year
Independent variables	Geographical distance	GD	The natural log of meters between coordinates of affiliate’ s city and parent company’ city
Independent variables	Business proximity	Related	If the affiliate’ s business scope is related to parent company, it is one, otherwise it is zero
Moderator	Supplier’s constraints	Sup5	The proportion of purchase from top five suppliers to the total purchase amount
	Customer’s constraints	Cus5	The sales proportion from top five customers to total sales
	Industrial performance aspiration gap	Gap1	Decline in expected industrial ROE relative to the actual industrial ROE
	Historical performance aspiration gap	Gap2	Differences between the expected historical ROE and the actual ROE
Control variables	Concurrent post	Concur	When the chairman is the CEO, Concur is one, otherwise it is zero
	Board size	Director	Number of directors
	Executives’ share	Ex_share	Ratio of the number of shares held by executives to the total number of shares
	Firm size	Size	Natural log of company assets
	Financial leverage	Lev	Ratio of company's liabilities to assets
	Return on assets	ROA	Ratio of net profit to total assets
	Monetary fund	Cash	Ratio of cash, bank deposits and other monetary fund to total assets at the end of the period
	Operating cash flow	Operate	Ratio of operating cash flow to operating income
	Financing cash flow	Finance	Ratio of financing cash flow to operating income

Variable type	Variable	Symbol	Definition and measurement
Dependent variables	R&D investment	R&D	The ratio of R&D expenditure to operating revenue of focal firms in the current year
Independent variables	Geographical distance	GD	The natural log of meters between coordinates of affiliate’ s city and parent company’ city
Independent variables	Business proximity	Related	If the affiliate’ s business scope is related to parent company, it is one, otherwise it is zero
Moderator	Supplier’s constraints	Sup5	The proportion of purchase from top five suppliers to the total purchase amount
	Customer’s constraints	Cus5	The sales proportion from top five customers to total sales
	Industrial performance aspiration gap	Gap1	Decline in expected industrial ROE relative to the actual industrial ROE
	Historical performance aspiration gap	Gap2	Differences between the expected historical ROE and the actual ROE
Control variables	Concurrent post	Concur	When the chairman is the CEO, Concur is one, otherwise it is zero
	Board size	Director	Number of directors
	Executives’ share	Ex_share	Ratio of the number of shares held by executives to the total number of shares
	Firm size	Size	Natural log of company assets
	Financial leverage	Lev	Ratio of company's liabilities to assets
	Return on assets	ROA	Ratio of net profit to total assets
	Monetary fund	Cash	Ratio of cash, bank deposits and other monetary fund to total assets at the end of the period
	Operating cash flow	Operate	Ratio of operating cash flow to operating income
	Financing cash flow	Finance	Ratio of financing cash flow to operating income

Source: Table created by authors