Page 266 - Ebook HTKH 2024

Appendix A. Variable Definition
R&D measures

TEC1 A variable that is defined as the natural logarithm of the Science and
Technology (STD) fund. The STD investment fund represents the
portion of the company’s STD fund that remains unspent at the reporting
date. In Vietnam, listed firms establish STD funds to finance scientific
research and technological development endeavors. (FiinPro datasource
provided by FiinGroup Joint Stock Company, Vietnam).
TEC2 A variable that is defined as the amount of STD funds divided by the
firm’s sales revenue.

PAPI index and its components
PAPI The Viet Nam Provincial Governance and Public Administration
Performance Index (PAPI) is the country’s largest annual time-series,
PAPI assesses three mutually reinforcing processes: policy making,
policy implementation and the monitoring of public service delivery.
The philosophy behind PAPI’s innovative policy monitoring approach
is that citizens are seen as “end-users of public administrative services”
capable of assessing governance and public administration in their
localities.
Environmental One out of eight dimensions of government performance (PAPI)
Governance
Control variables

Size The natural logarithm of a firm’s market capitalization at the end of the
fiscal year t-1 (FiinPro datasource)
Leverage The total long-term debts divided by total assets (FiinPro datasource)
ROA The income before extraordinary items divided by the book value of
total assets at the end of fiscal year t (FiinPro datasource)
ROE the ratio of net income over shareholder’s equity at the end of fiscal
year t (FiinPro datasource)
Cash The ratio over total assets (FiinPro datasource)
Other variables

Geo_dum An dummy variable that takes the value of one for firms headquartered
in the Southeast region of Vietnam and zero otherwise (Source:
https://vietstock.vn/)
Size_dum An dummy variable which takes the value of 1 if firm size is bigger than
the median for the large firms and 0 otherwise for the small firms
((FiinPro datasource)
Business_dum A dummy variable that equals one if firms belong to stock, insurance and
bank sections. (Source: https://vietstock.vn/)

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