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| Variable name | Variable code | Variable definition |
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| Executive compensation | Lnpay | The natural logarithm of the total remuneration of the top three executives |
| Corporate performance | Lnperf | Natural logarithm of net profit after excluding nonrecurring profit and loss |
| Decline in performance | Down | If the results of the company decrease year-on-year, 1 will be taken, otherwise, 0 will be taken. |
| Institutional investor | IIS | If the company has institutional investors holding shares, 1 will be taken; otherwise, 0 will be taken. |
| Bias-resistant institutional investors | PRII | Bias-resistant institutional investors take 1, otherwise, take 0 |
| Separation of two posts | Dual | If the two positions of chairman and general manager concurrently take 1, otherwise take 0 |
| Holding ratio | Share | Proportion of shares held by the largest shareholder |
| Central government control | CG | The ultimate controllers are SASAC and finance |
| The ministry and other central institutions and the state-owned enterprises directly under the central government shall take 1, and the contrary shall take 0 |
| Asset-liability ratio | Lev | Ratio of total liabilities to total assets at year-end |
| Board independence | Indd | Proportion of independent directors to total directors |
| West | West | If the place of incorporation of the company is in the west, 1 will be taken; otherwise, 0 will be taken. |
| Central | Central | If the place of incorporation of the company is central, 1 will be taken; otherwise, 0 will be taken. |
| Company size | Lnsize | Natural logarithm of total assets of a company |
| Rate of return on common stockholders’ equity | ROE | Net profit divided by net assets |
| Year | Year | Virtual variables that control annual influencing factors |
| Industry | Industry | Virtual variables, controlling industry influencing factors |
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