DOI: 10.5061/dryad.gxd2547st
title: Long-term oriented culture, performance pressure and corporate innovation evidence from China

description: 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.
description: # Long-Term Oriented Culture, Performance Pressure and Corporate
 Innovation Evidence from China
 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.