|
The variable types | Variable meaning | Measurement methods |
|
Interpreted variables | Appropriation of funds | Other receivables/period-end total assets |
Related party transactions | The ratio of the sum of related party transactions after removing “noise” to total assets at the end of the year |
|
Explanatory variables | Institutional investor clique’s share ratio | Identify the institutional investor clique by louvain algorithm and add the share ratios of cliques owned by the same company |
Degree centrality | Calculate annually the degree centrality of each institution in the institutional investor clique, and then, the degree centrality of the clique is weighted by the ratio of each institution’s shareholding |
Betweenness centrality | Calculate annually the betweenness centrality of each institution in the institutional investor clique, and then, the betweenness centrality of the clique is weighted by the ratio of each institution’s shareholding |
Closeness centrality | Calculate annually the closeness centrality of each institution in the institutional investor clique, and then, the closeness centrality of the clique is weighted by the ratio of each institution’s shareholding |
|
Control variables | Company size | The natural logarithm of the total assets at the end of the period |
Market value | Annual average market capitalization |
Company age | The natural logarithm of the company’s years of existence |
Shareholding by controlling shareholders | The share proportion of the listed company held by controlling shareholders |
Management shareholding | The share proportion of the listed company held by the management |
Board size | The natural logarithm of numbers of board directors |
Separation of two rights | The difference between control and ownership |
Number of general meetings | The number of annual general meetings of shareholders |
Nature of the audit firm | When the company’s audit firm belongs to the “top ten,” the value is 1, and the value is 0 for other firms |
Annual | Annual dummy variable |
Industry | Industry dummy variables |
|
| Equity checks and balances | Ratio: the sum of the shareholding ratios of the second to ten largest shareholders to the shareholding ratio of the controlling shareholders |
|