Does the Stock Market Affect the Real Economy? An Empirical Analysis Based on China’s Stock Market Liquidity

Table 1

Variable definition.

Variable name	Variable symbol	Variable definition
Enterprise investment (capital stock) indicator		Capital expenditure/total assets of the previous period.
Enterprise investment (capital flow) indicator		(Funds paid for acquisition and construction of fixed assets, intangible assets, and other long-term assets-depreciation and amortization)/total assets of the previous period.
Stock Illiquidity Index		The ratio of the absolute value of the daily return rate of a stock to the trading amount is summed and then divided by the annual trading days, and finally, the logarithm is taken as a whole, excluding stocks with a daily trading volume of less than 100 shares and annual trading days of less than 150 days. See formula (1) for details.
Enterprise Cash Flow Inflow Index		The ratio of earnings before interest, tax, depreciation, and amortization to total assets of the previous period.
Enterprise Cash Flow Expenditure Indicator		The ratio of cash paid for the acquisition and construction of fixed assets, intangible assets, and other long-term assets to total assets of the previous period.
Financial Leverage Index		Asset-liability ratio.
Company Growth Index		Cathay Pacific Tobin : enterprise market value/total assets.
Company size indicator		Natural logarithm of total assets.
Stock Volatility Index		Standard deviation of weekly stock returns over the course of a year.
Investor sentiment indicator		Cumulative return on equity over two years.
Business Capability Index		The ratio of operating income to total assets of the previous period.
Index of funds held by major shareholders		The ratio of other receivables to total assets at the end of the period.
Management cost indicator		The ratio of administrative expenses to main business income.