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| Variables | Definition |
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| LNFEE | Natural logarithm of audit fees |
| MAGNIFICATION1 | Magnification of consolidated financial statements, the ratio of minority equity to total equity in the consolidated financial statements |
| SIZE | Natural logarithm of sales revenue in the company’s consolidated financial statements |
| LEV | Total liabilities to total assets in the consolidated balance sheet |
| TOBINQ | (Number of tradable shares × closing price at the end of the year + nontradable shares × net assets per share + total liabilities)/total assets |
| DUAL | The value is 1 if the same person holds the chairman and the general manager; otherwise, it is 0 |
| INDRATIO | The ratio of the number of independent directors to the number of directors |
| AGE | The number of years since the company was founded |
| SOE | For state-owned enterprises, the value is 1; otherwise, the value is 0 |
| TOP1 | Percentage of shareholding of the largest shareholder |
| BIG4 | If the auditor is from “big four accounting firms,” the value is 1; otherwise, it is 0 |
| DELAY | Natural logarithm of the number of days between the end of the accounting period and the issuance of the auditor’s report |
| REC | The ratio of accounts receivable to total assets |
| RISK1 | The volatility of ROA, calculation of the rolling standard deviation of the 3-year ROA |
| RISK2 | The volatility of ROA, calculation of the rolling standard deviation of the 5-year ROA |
| SINDEX | The sum of the shareholdings of the second-largest shareholder to the tenth largest shareholder of the company |
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