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| Types of variables | Name of index | Description |
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| Dependent variable | Efficiency of resource allocation (Efficiency) | The percentage change of total factor productivity measured by Malmquist model in DEA model |
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| Independent variables | Monetary incentive (Pay) | Ln (total compensation of the top three executives) |
| Stock ownership incentive (Stock) | Ln (number of shares held by executives + 1) |
| Perquisite consumption incentive (Consumption) | Administrative expenses/operating income |
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| Control variables | Cash holding (Cash) | Balance of cash and cash equivalents at the end of the period/total assets |
| Asset-liability ratio (Lever) | Total liabilities/total assets |
| Growth (Growth) | Increase rate of business revenue |
| Firm age (Firmage) | The establishment of the company to the corresponding balance sheet date |
| Ownership concentration (First) | The largest shareholder’s shareholding ratio |
| Nature of property right (Owner) | Dummy variable, 0 for state-owned enterprises and 1 for private enterprises |
| Mean tenure of executives (Mtenure) | Average tenure of senior management team members |
| Mean age of executives (Mage) | Average age of senior management team members |
| Mean education background of executives (Meducation) | Average education background of senior management team members: 1 means technical secondary school or below, 2 means junior college, 3 means bachelor’s degree, 4 means master’s degree, 5 means doctoral degree, 6 means other (degrees announced in other forms, such as honorary doctorate, correspondence), and 7 means MBA/EMBA |
| Year (Year) | Dummy variables based on 2016 |
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