187 NTU Management Review Vol. 31 No. 2 Aug. 2021 Appendix Table A1 The Definitions of Variables Variables Definitions Patent The total number of patents applied for by a firm. Adjuste’Citation The patent citation is the total number of citations received from all granted patents that are filed by a firm. The adjusted citation is followed Hall, Jaffe, and Trajtenberg (2001, 2005) to adjust patent citation by correcting the number of citations received by each patent by the application year and technology classification. Specifically, Hall et al. (2001) classify the 3-digit IPC code into 6 main industrial categories and use the simulated cumulated lag distribution of each category to calculate the truncation adjusted citations. R&D Expenditure R&D expenditure (millions of New Taiwan Dollars) R&D intensity R&D expenditure divided by total assets (percentage) Total Assets Total assets (millions of New Taiwan Dollars) Debt Ratio Total liability divided by total assets (percentage) Net Sales Net sales (millions of New Taiwan Dollars) ROA (Return On Asset) Earnings before interest, taxes, depreciation, and amortization (EBITDA) divided by the average of total assets (percentage) Tobin’s Q Market value of equity plus book value of long-term and short-term debts, divided by book assets

RkJQdWJsaXNoZXIy ODg3MDU=