The Impact of Capital Structure on Profitability: An Empirical Analysis of Non-financial Listed Firms in China
This study examines the influence of capital structure on profitability of listed firms in China during the period from 2006 to 2015. The study uses secondary data collected from the financial statements of 2,693 non-financial firms listed on Shanghai Stock Exchange and Shenzhen Stock Exchange. The...
| Main Author: | |
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2016
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| Online Access: | https://eprints.nottingham.ac.uk/36558/ |
| _version_ | 1848795303485898752 |
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| author | Han, Y. |
| author_facet | Han, Y. |
| author_sort | Han, Y. |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | This study examines the influence of capital structure on profitability of listed firms in China during the period from 2006 to 2015. The study uses secondary data collected from the financial statements of 2,693 non-financial firms listed on Shanghai Stock Exchange and Shenzhen Stock Exchange. The Pooled Ordinary Least Squares Model, the Fixed Effect Model and the Random Effect Model are chosen to analyse panel data in this research. This study shows that in China, firms depend largely on external financing, of which a great proportion appears to be short-term debt. Furthermore, it is suggested that capital structure indicated by total debt to assets ratio has a significantly negative impact on firm’s profitability represented by return on assets. Specifically, for both short-term debt and long-term debt, the results present us with a significantly inverse association with profitability. In other words, for Chinese firms during the analysed period, high leverage indeed has detrimental effects on earnings, no matter which kind of debts being issued. |
| first_indexed | 2025-11-14T19:29:57Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-36558 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T19:29:57Z |
| publishDate | 2016 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-365582021-06-11T15:45:14Z https://eprints.nottingham.ac.uk/36558/ The Impact of Capital Structure on Profitability: An Empirical Analysis of Non-financial Listed Firms in China Han, Y. This study examines the influence of capital structure on profitability of listed firms in China during the period from 2006 to 2015. The study uses secondary data collected from the financial statements of 2,693 non-financial firms listed on Shanghai Stock Exchange and Shenzhen Stock Exchange. The Pooled Ordinary Least Squares Model, the Fixed Effect Model and the Random Effect Model are chosen to analyse panel data in this research. This study shows that in China, firms depend largely on external financing, of which a great proportion appears to be short-term debt. Furthermore, it is suggested that capital structure indicated by total debt to assets ratio has a significantly negative impact on firm’s profitability represented by return on assets. Specifically, for both short-term debt and long-term debt, the results present us with a significantly inverse association with profitability. In other words, for Chinese firms during the analysed period, high leverage indeed has detrimental effects on earnings, no matter which kind of debts being issued. 2016 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/36558/1/2016%20Dissertation-%20elec.pdf Han, Y. (2016) The Impact of Capital Structure on Profitability: An Empirical Analysis of Non-financial Listed Firms in China. [Dissertation (University of Nottingham only)] |
| spellingShingle | Han, Y. The Impact of Capital Structure on Profitability: An Empirical Analysis of Non-financial Listed Firms in China |
| title | The Impact of Capital Structure on Profitability: An Empirical Analysis of Non-financial Listed Firms in China |
| title_full | The Impact of Capital Structure on Profitability: An Empirical Analysis of Non-financial Listed Firms in China |
| title_fullStr | The Impact of Capital Structure on Profitability: An Empirical Analysis of Non-financial Listed Firms in China |
| title_full_unstemmed | The Impact of Capital Structure on Profitability: An Empirical Analysis of Non-financial Listed Firms in China |
| title_short | The Impact of Capital Structure on Profitability: An Empirical Analysis of Non-financial Listed Firms in China |
| title_sort | impact of capital structure on profitability: an empirical analysis of non-financial listed firms in china |
| url | https://eprints.nottingham.ac.uk/36558/ |