Implications of Venture Capital on Companies’ M&A Goodwill Bubbles: Evidence from Chinese Listed Companies

Table 1

Variable description and definition.

Variable type	Variable name	Variable symbols	Variable definition
Interpreted variable	Excess goodwill	GWover	(The book value of goodwill of enterprise−the average book value of goodwill of the industry)/total assets
Explanatory variable	Risk investment	VC	A virtual variable that equals 1 for enterprise held by venture capital institutions, and 0 otherwise
Control variable	Company size	LnSize	Log of final total assets
	Nature of the property right	SOE	A virtual variable that equals 1 for state-owned enterprise, and 0 otherwise
	Market−account ratio	MB	Ratio of market value to book value
	Return on total assets	ROA	Net profit ×2/(initial total assets + final total assets)
	Assets and liabilities	LEV	Final total assets/final total liabilities
	Auditor selection	Big4	A virtual variable that equals 1 for enterprises that are audited by a big 4, and 0 otherwise
	Equity concentration	Top1	Shareholding ratio of the largest shareholder
	Net profit growth rate	Growth	(Ending net profit–beginning net profit)/ beginning net profit
	Operating capacity	Turnover	Total operating income×2/(initial total assets + final total assets)
	Year	Year	Year fixed effects
	Industry	Ind	Industry fixed effects divided according to the 2012 edition of the industry classification of the CSRC