Name Definition Type
BIG4_BANK Dummy variable equals to 1 if the lender is one of Big Four state banks, and 0 otherwise
Dummy
BANK_OWNERSHIP Dummy variable equals to 1 if the lender is one of the state owned or controlled banks, and 0 otherwise
Dummy
BANK_RANKING Dummy variable equals to 1 if a loan is issued by a bank’s local branches below the provincial level, and 0 otherwise
Dummy
BANK_LOCATION Dummy variable equals to 1 if the bank in the province with the lower marketization level in credit allocation, and 0 otherwise
Dummy
The natural logarithm of total asset Continuous BORROWER_SIZE
Dummy variable equals to 1 if the natural logarithm of total asset is less than the median the natural logarithm of total asset of all the listed firms in the relevant year, and 0 otherwise
Dummy
DCC The divergence between cash-flow rights and control rights
Continuous ROA After tax profits divided by the book
value of total assets
Continuous DROA The difference in ROA between year
prior to bank loan announcement and bank loan announcement year
Continuous
Tq_70 The measurement of Tobin’s Q taking into account of illiquidity discounts of 70%
Continuous
Tq_80 The measurement of Tobin’s Q taking into account of illiquidity discounts of 80%
Continuous
DTq_70 The difference in Tobin’s Q taking into account of illiquidity discounts of 70% between year prior to bank loan announcement and bank loan announcement year
Continuous
BORROWER_OWNERSHIP Dummy variable equals to 1 if the state ultimately controls the company, and 0 otherwise
Name Definition Type Z-INDEX The total shareholding owned by the largest
shareholder divided by the total shareholding owned by the second largest shareholder
Continuous
CR5－CR1 The total shareholding owned by the top five shareholders minus the total shareholding owned by the largest shareholder
Continuous
BOARD_SIZE The number of directors on the board Continuous BOARD_COMPOSITION The percentage of independent directors on the
board
Continuous between (0,1) DUALITY Dummy variable equals to 1 if the one person
holds both positions, and 0 otherwise
Dummy BOARD_MEETING The number of board meetings per year Continuous SB_SIZE The natural logarithm of the total number of
supervisory board members
Continuous SB_MEETING The number of supervisory meetings per year Continuous BHN Dummy variable equals to 1 if the borrowers issue
B or H or N or other shares not traded on the SHSE and SZSE, and 0 otherwise
Dummy
ST Dummy variable equals to 1 if the borrowers in ST status, and 0 otherwise
Dummy INDUSTRY_1 Dummy variable equals to 1 if the borrower is
construction industry type, and 0 otherwise
Dummy INDUSTRY_2 Dummy variable equals to 1 if the borrower is
farming, forestry, animal husbandry and fishery industry type, and 0 otherwise
Dummy
INDUSTRY_3 Dummy variable equals to 1 if the borrower is information technology industry type, and 0 otherwise
Dummy
INDUSTRY_4 Dummy variable equals to 1 if the borrower is integrated industry type, and 0 otherwise
Dummy INDUSTRY_5 Dummy variable equals to 1 if the borrower is
manufacturing industry type, and 0 otherwise
Dummy INDUSTRY_6 Dummy variable equals to 1 if the borrower is
production of supply of power, gas and water industry type, and 0 otherwise
Dummy
INDUSTRY_7 Dummy variable equals to 1 if the borrower is real estate industry type, and 0 otherwise
Dummy INDUSTRY_8 Dummy variable equals to 1 if the borrower is
social services industry type, and 0 otherwise
Dummy INDUSTRY_9 Dummy variable equals to 1 if the borrower is
transmitting, culture industry type, and 0 otherwise
Dummy INDUSTRY_10 Dummy variable equals to 1 if the borrower is
transportation, storage industry type, and 0 otherwise
Dummy
INDUSTRY_11 Dummy variable equals to 1 if the borrower is wholesale and retail trades industry type, and 0 otherwise
Name Definition Type LOAN_SIZE Total amount of loan divide by the total asset
at the end of last year
Continuous Dummy variable equals to 1 if the loan size is
more than the median loan size of all loans in the relevant year, and 0 otherwise
Dummy
LOAN _MATURITY The end of the life of the loan Continuous SYDICATION Dummy variable equals to 1 if the loan is the
syndication, and 0 otherwise
Dummy COVENANTS/COLLATERAL Dummy variable equals to 1 if the loan is
with covenants/collateral, and 0 otherwise
Dummy PURPOSE_CAPITAL Dummy variable equals to 1 if the loan is
used for capital expenditure, and 0 otherwise
Dummy PURPOSE_ REPAY Dummy variable equals to 1 if the loan is
used for repaying old debts, and 0 otherwise
Dummy PURPOSE_ LONG Dummy variable equals to 1 if the loan is
used for long term investment, and 0 otherwise
Dummy
PURPOSE_NO Dummy variable equals to 1 if the loan has no specific purpose, and 0 otherwise
Dummy YEAR_1 Dummy variable equals to 1 if the bank loan
announcement year is 1998, and 0 otherwise
Dummy YEAR_2 Dummy variable equals to 1 if the bank loan
announcement year is 1999, and 0 otherwise
Dummy YEAR_3 Dummy variable equals to 1 if the bank loan
announcement year is 2000, and 0 otherwise
Dummy YEAR_4 Dummy variable equals to 1 if the bank loan
announcement year is 2001, and 0 otherwise
Dummy YEAR_5 Dummy variable equals to 1 if the bank loan
announcement year is 2002, and 0 otherwise
Dummy YEAR_6 Dummy variable equals to 1 if the bank loan
announcement year is 2003, and 0 otherwise
Dummy YEAR_7 Dummy variable equals to 1 if the bank loan
announcement year is 2004, and 0 otherwise