Table 1 Variables description summary
From: Could more innovation output bring better financial performance? The role of financial constraints
Type | Name | Symbol | Explanation and measurement |
|---|---|---|---|
Dependent variable | Financial performance | Finan | The firm's annual main business profit |
Independent variable | Innovation output | Innov | The logarithm of the firm’s new products value |
Moderation variable | Individual financial constraints | IFC | The SA index method(Hadlock and Pierce 2010), the larger absolute value indicates a higher level of IFC |
Market-based financial constraints | MFC | Marketization indices of the financial industry in each province developed by the National Economic Research Institute (NERI) of China (Fan et al. 2010) | |
Control Variables | Capital intensity | CI | The proportion of fixed assets to total assets |
Market share | Share | The proportion of the firm’s sales to total industry sales | |
Subsidy income | Subsidy | The logarithm of firm’s government subsidy income | |
Agency cost | AC | The ratio of management expenses to annual sales (Leland 2010) | |
Internationalization | Export | Firm’s degree of internationalization with a value of 1 for the firms which export or 0 if not |