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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