Research on Technological Innovation Investment, Financing Constraints, and Corporate Financial Risk: Evidence from China
Table 2
Description and definition of variables.
Variable category
Variable symbol
Variable name
Variable definition
Explained variable
Z-risk
Financial risk
(1.2 × working capital + 1.4 × retained earnings + 3.3 × earnings before interest and tax + 0.999 × sales income)/total assets + 0.6 × total market value of shares/total liabilities
Explanatory variable
RDR
Technological innovation investment
R&D input/operating revenue
Moderator
SA
Financing constraints
0.043 × size ^2 – 0.737 × size − 0.04 × age
Control variable
Size
Enterprise scale
Natural logarithm of total assets at the end of the period
Age
Operating life
Year-year of establishment of the enterprise +1
DFL
Financial leverage
(Net profit + income tax expense + finance expense)/(net profit + income tax expense)
