Long-term oriented culture, performance pressure and corporate innovation evidence from China
Data files
Jan 02, 2024 version files 2.26 MB
Abstract
This paper extracts cultural elements of long-term orientation from Chinese listed firms' annual reports, then argues and testifies whether long-term orientation can help firms to hang onto risky decisions especially as innovation, when firms are under performance pressure. There are three main conclusions. First, we report that the higher the degree of long-term oriented culture a firm has, the stronger innovation capability the firm shows. Second, we find that long-term oriented culture can improve employee’s educational qualifications to promote corporate innovation, as well as improve the corporate internal control to promote innovation. Third, when firms are subjected to internal or external performance pressure in their business process, higher long-term oriented culture will make firms more innovative.
README: Long-Term Oriented Culture, Performance Pressure and Corporate Innovation Evidence from China
https://doi.org/10.5061/dryad.gxd2547st
Summary of this dataset: (1) The higher degree of long-term oriented culture a firm has, the stronger innovation capability the firm shows. (2) Long-term oriented culture can improve employee’s educational qualification to promote corporate innovation, as well as improve the corporate internal control to promote innovation. (3) when firms are subjected to internal or external performance pressure in their business process, higher long-term oriented culture will make firms more innovative.
Description of the data and file structure
Description of file structure and contents: This dataset includes the original dataset and Implementation process codes for paper results. The original dataset includes data of all the firm and annual for the paper. The code includes implementation process of descriptive statistics , univariate comparison, main regression results, robustness tests, mediating effect tests et al.
Definitions of all variables:
- stkcd, Firm’s stock code
- Patent, The total number of domestic and foreign patents applied for, and add 1, and then take the natural logarithm.
- Patent_Sub, The number of domestic and foreign invention patents applied for, and add 1, and then take the natural logarithm.
- Patent_Str, The number of domestic and foreign utility model patents and design patents applied for, and add 1, and then take the natural logarithm.
- f1Patent, Patent for the previous period
- f2Patent, Patents with two prior periods
- f3Patent, Patents with three prior periods
- f1Patent_Sub, Patent_Sub for the previous period
- f2Patent_Sub, Patent_Sub with two prior periods
- f3Patent_Sub, Patent_Sub with three prior periods
- f1Patent_Str, Patent_Str for the previous period
- f2Patent_Str, Patent_Str with two prior periods
- f3Patent_Str, Patent_Str with three prior periods
- Culture_LT, The the total words of the long-term oriented culture of firm’s annual report, and add 1, and then take the natural logarithm.
- Culture_LT_5, Culture_LT_5 divides Culture_LT into 1, 2, 3, 4 and 5 levels according to the long-term oriented culture level of the industry in which the firm is located every year.
- Culture_LTmean, the mean value of long-term oriented culture of other firms in the same region and industry
- MasterRatio, Percentage of firm’s employees with a master's degree.
- IC, Internal Control Index published by Diebold divided by 100.
- P_Roa, An indicator variable equal to 1 if the firm’s ROA is less than the average value in the industry each year where the firm located, otherwise is 0.
- P_HHI, The Herfindahl index is used to measure product market competition. P_HHI is an indicator variable equal to 1 if the firm’s Herfindahl index is less than the average value in the industry each year where the firm located, which means the firm’ product market competition is is more intense, otherwise is 0.
- P_Analyst, The total number of analysts tracked, and add 1, and then take the natural logarithm.
- Lage, The natural logarithm of the years from the company listed
- Roa, The value that net income divided by total assets.
- Top10, The percentage of shares held by the top ten shareholders.
- Ocf, The net cash flow from operating activities divided by total assets
- Growth, The ratio of the sales revenue growth.
- Indep, The number of independent directors on the board of directors divided by the total number of directors
- Lev, The ratio of liability to total assets.
- Size, The natural logarithm of total assets.
- Board, The natural logarithm of the total number of board members.
- Dual, An indicator variable equal to 1 if the chairman and CEO is one person, otherwise it is 0
- Soe, An indicator variable equal to 1 if the firm control by the state, otherwise is 0.
- RD, The ratio of the R&D expenditure to total assets.
- year, Control year factors.
- Industry, Control industry factors. Using the industry classification guidelines of the China Securities Regulatory Commission, the industry is subdivided into 21 industries (excluding the financial industry), while the manufacturing industry is subdivided using a two digit code.
Sharing/Access information
Data was derived from the following sources:We selected China A-share listed firms from 2008 to 2019 as the initial research sample. The corporate long-term oriented culture indicators were obtained from annual reports, which were obtained by manual reading and PYTHON text analysis method; patent data were obtained from the Chinese Research Data Services (CNRDS) database; and other financial and governance data were obtained from the China Securities Market and Accounting Research (CSMAR) database.
Code/Software
Stata16.