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| Variable category | Variables | Definition of variables |
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| Dependent variables | Return on equity (ROE) | |
| Return on total assets (ROA1) | EBITDA/average total assets; note: |
| Net profit on total assets (ROA2) | Net profit/average total assets |
| Independent variables | Degree of centralization (Cen) | Formula (1): regression by industry and year to take residuals |
| Threshold variables | Firm scale (size) | The natural logarithm of total assets at the end of the year |
| Control variables | The number of years on the market (age) | Current year-the year of listing, taking the natural logarithm |
| Initial cash holdings (cash) | Cash and equivalents/total assets |
| The proportion of the largest shareholder (FirstShr) | Number of shares held by the largest shareholder/total number of shares |
| Leverage (Lev) | Interest bearing debt/total assets |
| Net profit in parent company’s owners (Pnpf) | Net profit in parent company’s owners/net profit |
| Current liability ratio (CRa) | Current liability/total liability |
| Growth in sales (growth) | Revenues of the period/revenues of the previous period-1 |
| Other variables | State-owned enterprise (Soe) | State-owned enterprise, dummy variables, state-owned enterprises taking 1 and other enterprises taking 0 |
| Family enterprise (Fae) | Family enterprise, dummy variables, family enterprises taking 1 and other enterprises taking 0 |
| Investment (Inv) | Taking natural logarithm of () |
| Tobin’s (TB) | |
| Investment effectiveness (InvEff) | Formula (1): regression by industry and year to take absolute value of residuals |
| Numbers of patents (ItN) | Total number of company patents |
| The cost profit margins (Costta) | |
| Proportion of parent company’s salary () | The company’s cash flow statement “cash paid to and for employees”/corresponding items in the consolidated statement |
| Proportion of assets in parent company () | Total assets in parent company/total assets in consolidated financial statement |
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