skip to main content
Language:
Search Limited to: Search Limited to: Resource type Show Results with: Show Results with: Search type Index

The capital structure of Chinese listed firms: is manufacturing industry special?

Managerial finance, 2014-05, Vol.40 (5), p.469-486 [Peer Reviewed Journal]

Emerald Group Publishing Limited ;Copyright Emerald Group Publishing Limited 2014 ;ISSN: 0307-4358 ;EISSN: 1758-7743 ;DOI: 10.1108/MF-08-2013-0211

Full text available

Citations Cited by
  • Title:
    The capital structure of Chinese listed firms: is manufacturing industry special?
  • Author: Tse, Chin-Bun ; Rodgers, Timothy
  • Subjects: Accounting & Finance ; Borrowing ; Capital markets ; Capital structure ; Corporate debt ; Cost control ; Culture ; Debt financing ; Equity ; Financial leverage ; Financial management/structure ; Hypotheses ; Influence ; Long term debt ; Manufacturing ; Profitability ; Studies ; Tax incentives
  • Is Part Of: Managerial finance, 2014-05, Vol.40 (5), p.469-486
  • Description: Purpose – The purpose of this paper is to examine whether or not industry membership can explain the leverage of Shanghai listed firms prior to the 2007 financial crisis. In view of the central role that manufacturing industry played in China's rise as a global economic power, the authors are particularly interested in whether or not manufacturing is a special case. Design/methodology/approach – The paper undertakes a comparative study of leverage differences between manufacturing and non-manufacturing industry firms on both a cross-section and time-series basis. This is supplemented by a pooled regression analysis that models the factors determining leverage on an industry-by-industry basis. Findings – The authors find that leverage levels differ across industries because of industry-based differences in financial characteristics. It is also found that, despite playing a leading role in China's economic development, there is no evidence to suggest that manufacturing is a special case. Across all sectors borrowing-power-related variables were identified as being important determinants of leverage and, contrary to the expectations, factors relating to profitability were largely insignificant. Research limitations/implications – The trade off and pecking order capital structure theories found to be commonly applicable to firms in the western business environment do not appear to adequately explain capital structure in China. Originality/value – The paper identify evidence to suggest that China needs to be treated as a “special case” in the context of capital structure theory due to the unique cultural and business environment.
  • Publisher: Patrington: Emerald Group Publishing Limited
  • Language: English
  • Identifier: ISSN: 0307-4358
    EISSN: 1758-7743
    DOI: 10.1108/MF-08-2013-0211
  • Source: ProQuest Central
Back to results list
INSPIRE LIBRARY - TON DUC THANG UNIVERSITY (84-028) 37 755 057 Feedback
19 Nguyen Huu Tho St. Dist.7, HCM thuvien@tdtu.edu.vn

Copyright © 2017 INSPIRE LIBRARY - TON DUC THANG UNIVERSITY

Searching Remote Databases, Please Wait