Table 1 Variables description and selection
Variable type | Variable name | Symbol | Variable description | Indicator unit |
|---|---|---|---|---|
Explained variable | Innovation output | PG | Ln (the number of invention patents granted + 1) | – |
Independent variable | Digital transformation | DT | Digital related word frequency in annual reports of listed companies | % |
Moderating variables | Banking sector | FDb | Loan balance of financial institutions at the end of the year/GDP | % |
Capital market | FDc | Stock market total value traded/GDP | % | |
Control variables | Capital structure | CS | Asset-liability ratio | % |
Profitability capability | PC | operating profit margin | % | |
Equity balance | EB | The sum of the shareholding ratio of the second to fifth major shareholders/the shareholding ratio of the first major shareholder | % | |
Cash flow ratio | CF | net operating cash flow/current liabilities | % | |
Big4 | Big4 | audit institution is one of the four major accounting firms | 0 or 1 |