Empirical Study on Capital Structure Determinants in Chinese Listed Companies
Zhang, Jiye (2010) Empirical Study on Capital Structure Determinants in Chinese Listed Companies. [Dissertation (University of Nottingham only)] (Unpublished)
This paper develops a preliminary study to investigate the determinants of capital structure of Chinese-listed companies using panel data. The analysis of the research is based on the dataset of 200 Chinese listed firms which publicly traded A-shares on both Shanghai and Shenzhen Stock Exchange between 2005 and 2009. The different theories, specifically, the trade-off, pecking order, agency theory, market timing and signalling theories, are deployed to clarify and predict the signs and significance of each factor identified by Ragan and Zingales (1995) and Booth et al. (2001). The book value of total liability ratio is employed as the main proxy for the measure of leverage in this research. Eight elements have been selected as explanatory variables which predict to have significant impacts on the capital structure of Chinese listed firms.
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