Review Article
Research of Microcosmic Affection Factors on Capital Misallocation: A Case of Chinese Listed Companies
Table 4
Variables’ definitions.
| Variables | Name | Description | Calculation |
| Dependent variable | KLDistortit | Capital misallocation ratio | |
| Independent variables | liquidityit | Financial liquidity | (Current assets − current liabilities)/(current liabilities)it | pledgeabilityit | Financial pledgeability | See details in (1) |
| Control variables | Ln(A) | Firm size | LN (total assets (ten thousand yuan)) | Profitabilityit | Profitability | (Total operating incomes – total operating costs)/total assets | Debt structure | Debt structure | Total long-term debts/total debts | IFA | Investment in fixed assets | is fixed assets; is rate of inflation; is depreciation | EFD | External finance dependence | See details in (2) | Industry | Industry | Dummy, if firm belongs to this industry, industry = 1; otherwise, industry = 0 | Year | Year | Dummy, if data belongs to this year, year = 1; otherwise, year = 0 | IP | Innovation performance | See details in (3) |
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