Table A1.

Variable definitions

VariableDefinition
CoD The cost of debt, which is equal to the financing expense, including interest expense, exchange loss and service fees, divided by the total liabilities 
IPO A dummy variable equal to one if the firm has been listed 
Leverage Total liabilities divided by the total assets 
Size The natural logarithm of the total assets 
Age The natural logarithm of the firm age 
Current ratio Current assets divided by the total assets 
ROA Profit, scaled by the total assets 
Fixed assets Fixed assets, scaled by the total assets 
SOE A dummy variable equal to One if the firm is a state-owned enterprise 
IPO likelihood An instrumental variable reflecting the likelihood that that a firm receives approval for its IPO application, which is defined as:IPOLikelihoodit=Approval Rate in the year of observations ifIPOit=0Approval Rate in the year ofIPOit=1 
Employee The natural logarithm of the number of employees 
R&D expense The R&D expense, scaled by the total sales 
Higher education The number of employees with bachelor’s or postgraduate degrees, scaled by the number of total employees 
VariableDefinition
CoD The cost of debt, which is equal to the financing expense, including interest expense, exchange loss and service fees, divided by the total liabilities 
IPO A dummy variable equal to one if the firm has been listed 
Leverage Total liabilities divided by the total assets 
Size The natural logarithm of the total assets 
Age The natural logarithm of the firm age 
Current ratio Current assets divided by the total assets 
ROA Profit, scaled by the total assets 
Fixed assets Fixed assets, scaled by the total assets 
SOE A dummy variable equal to One if the firm is a state-owned enterprise 
IPO likelihood An instrumental variable reflecting the likelihood that that a firm receives approval for its IPO application, which is defined as:IPOLikelihoodit=Approval Rate in the year of observations ifIPOit=0Approval Rate in the year ofIPOit=1 
Employee The natural logarithm of the number of employees 
R&D expense The R&D expense, scaled by the total sales 
Higher education The number of employees with bachelor’s or postgraduate degrees, scaled by the number of total employees 

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