Research Article
Equity Incentive Model, Source of Subject Matter and Enterprise Performance: Modification Effect Based on Equity Incentive Intensity
Table 1
Definition and description of variables.
| Variable category | Variable sign | Variable definition |
| Explained variables | ROA | Net profit/average balance of total assets | ROE | Net profit/average balance of shareholders’ equity |
| Explanatory variables | Mode | Dummy variables: stock option = 1; restricted stock = 0 | Strength | Strength total number of incentives/total equity | Source | Dummy variables: stock repurchase = 1; issuing shares = 0 |
| Control variables | Size | Ln (total assets) | Operation | Net operating income for the period/2 | Lev | Liabilities at the end of the period/total assets at the end of the period | Growth | (Assets at end of current period − assets at end of previous year)/(assets at end of previous year) | Both | Chairman and managing director = 1, otherwise 0 | Shrhfd1 | Shareholding of the largest shareholder | Donation | Total annual social giving by listed companies |
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