TABLE 1.
Variable definitions.
| Abbreviation | Variables | Definition |
| FB | CEO financial background | If the CEO has a financial background, value is 1; otherwise, it is 0. |
| PAT | Corporate innovation | Ln (the total number of patents +1) |
| MO | Managerial ownership | Shares held by the CEO/total shares |
| LEV | Leverage ratio | Total liabilities/total assets |
| SIZE | Firm size | Ln (total assets) |
| FAGE | Firm age | Ln (the difference between the current year and the establishment year +1) |
| SALEGRO | Sales growth rate | Growth of current year’s sales revenue/total sales revenue of last year |
| ROA | Return on assets | Net income/total assets |
| Tobin’s Q | Tobin’s Q | The market value of the asset/the book value of the asset |
| SOE | Enterprises property right | Dummy variable that is 1 a firm has state-owned actual controllers and 0 otherwise. |
| INSHOLD | The proportion of institutional investors holding | Shares held by institutional investors/total shares |
| IDRATIO | The ratio of independent directors | Number of independent directors/total number of directors |
| BSIZE | Board size | Number of directors on the board |
| IND | Industry dummy variable | The industrial dummy variables were divided into industries according to the 2012 industry classification standard of the China Securities Regulatory Commission |
| YEAR | Year dummy variable | Value of 1 if it belongs to the year, otherwise 0 |