Research of Microcosmic Affection Factors on Capital Misallocation: A Case of Chinese Listed Companies

Table 4

Variables’ definitions.

Variables	Name	Description	Calculation
Dependent variable	KLDistortit	Capital misallocation ratio
Independent variables	liquidityit	Financial liquidity	(Current assets − current liabilities)/(current liabilities)it
	pledgeabilityit	Financial pledgeability	See details in (1)
Control variables	Ln(A)	Firm size	LN (total assets (ten thousand yuan))
	Profitabilityit	Profitability	(Total operating incomes – total operating costs)/total assets
	Debt structure	Debt structure	Total long-term debts/total debts
	IFA	Investment in fixed assets	is fixed assets;  is rate of inflation;  is depreciation
	EFD	External finance dependence	See details in (2)
	Industry	Industry	Dummy, if firm belongs to this industry, industry = 1; otherwise, industry = 0
	Year	Year	Dummy, if data belongs to this year, year = 1; otherwise, year = 0
	IP	Innovation performance	See details in (3)