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  The weight of shareholding concentration (SHC) reflects the control of the largest shareholder over the company. The weight can be positive or negative and needs to be determined in combination with specific strategies and backtesting results. Usually, excessive concentration of shareholdings may lead to insider control risks, while excessive dispersion may lead to inefficient decision-making.

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  The weight of shareholder dispersion (SHD) reflects the shareholdings of the second to tenth largest shareholders. The weight can be positive or negative and needs to be determined in combination with specific strategies and backtesting results. It complements the shareholding concentration and reflects the balance of the equity structure. A more balanced equity structure may mean a more complete check and balance mechanism.

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  The weight of the circulating stock ratio (CSR) indicates the proportion of freely tradable shares to the total share capital. A higher circulating stock ratio usually means higher liquidity and market attention. The weight can be positive or negative, and needs to be determined in combination with the specific strategy and backtesting results.

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  The weight of the reciprocal number of shareholders (RNS) is used because, generally speaking, the fewer the number of shareholders, the more concentrated the shareholder structure, but the meaning here is different from the concentration and dispersion of shareholdings, and it represents another angle of the company's equity structure. The weight can be positive or negative, and needs to be determined in combination with specific strategies and backtesting results.

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  The weight of the independent director ratio (IDR) represents the proportion of independent directors on the board of directors. Independent directors play an important role in supervising and checking management in corporate governance. The weight is usually positive, and a higher proportion of independent directors may mean better corporate governance.

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  The weight of the board size (BS) indicates the total number of board members. A reasonable board size helps improve decision-making efficiency, while too large or too small may affect the operation of the board. The weight can be positive or negative, and needs to be determined in combination with specific strategies and backtesting results.

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  The weight of management remuneration level (MRL) reflects the annual remuneration of the company's management. Reasonable remuneration level can effectively motivate management, but too high or too low remuneration may lead to moral hazard and insufficient incentives. The weight can be positive or negative and needs to be determined in combination with specific strategies and backtesting results.

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  The weight of management shareholding ratio (MSR) represents the proportion of company shares held by management to total shares. A higher management shareholding ratio generally means that the interests of management are more aligned with those of shareholders. The weight is usually positive, and a higher shareholding ratio may mean stronger management motivation.

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  The weight of the negative indicator of violation penalties (NIVP) indicates whether the company has been punished by the CSRC or other institutions such as the exchange for violating securities regulations and exchange rules. Violation penalties usually have a negative impact on the company and reduce the quality of corporate governance. It is recommended to use negative indicators here, such as the number of penalties received, or use quantitative indicators to describe the severity of the penalties. The weight is usually negative.

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  The weight of the implementation of equity incentives (IEI) reflects whether the company implements an equity incentive plan, as well as the scale and coverage of the incentive plan. Equity incentives help to bind the interests of management with the interests of shareholders and enhance the long-term value of the company. The implementation of equity incentives can be represented by a binary variable or the amount of equity incentives implemented. The weight is usually positive.