Determinants of Capital Structure: Evidence from Chinese firms

This study focused on investigating the determinant factors of corporate capital structure among Chinese listed firms. The sample data contained a total of 200 firms observed for a ten year period of 2007 to 2016. The dependent variable of this study, debt ratio was broken down into 3 parts and seve...

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Main Author: Akite, Jennifer
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2017
Subjects:
Online Access:https://eprints.nottingham.ac.uk/46831/
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author Akite, Jennifer
author_facet Akite, Jennifer
author_sort Akite, Jennifer
building Nottingham Research Data Repository
collection Online Access
description This study focused on investigating the determinant factors of corporate capital structure among Chinese listed firms. The sample data contained a total of 200 firms observed for a ten year period of 2007 to 2016. The dependent variable of this study, debt ratio was broken down into 3 parts and seven independent variables tested against them. Using panel data estimation method (OLS, fixed effects and random effects), a number of variable were found to be significant depending on the precise definition of leverage used. From the OLS regression, short term debt ratio was found to have a significant positive relationship with tangibility, size, profitability and earnings volatility but a negative relationship with non-debt tax shield. Long-term debt had a positive significant relationship with non-debt tax shield but a negative relationship with tangibility and volatility. Total debt was found to have a positive significant relationship with profitability, tangibility, size and non-debt tax shield. Also, from the analysis of the data, it was observed that Chinese listed firms mainly relied on short-term financing.
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format Dissertation (University of Nottingham only)
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spelling nottingham-468312018-04-17T14:58:48Z https://eprints.nottingham.ac.uk/46831/ Determinants of Capital Structure: Evidence from Chinese firms Akite, Jennifer This study focused on investigating the determinant factors of corporate capital structure among Chinese listed firms. The sample data contained a total of 200 firms observed for a ten year period of 2007 to 2016. The dependent variable of this study, debt ratio was broken down into 3 parts and seven independent variables tested against them. Using panel data estimation method (OLS, fixed effects and random effects), a number of variable were found to be significant depending on the precise definition of leverage used. From the OLS regression, short term debt ratio was found to have a significant positive relationship with tangibility, size, profitability and earnings volatility but a negative relationship with non-debt tax shield. Long-term debt had a positive significant relationship with non-debt tax shield but a negative relationship with tangibility and volatility. Total debt was found to have a positive significant relationship with profitability, tangibility, size and non-debt tax shield. Also, from the analysis of the data, it was observed that Chinese listed firms mainly relied on short-term financing. 2017-09-28 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/46831/1/MSc%20Disseration.pdf Akite, Jennifer (2017) Determinants of Capital Structure: Evidence from Chinese firms. [Dissertation (University of Nottingham only)] Short-term debt total debt long-term debt leverage
spellingShingle Short-term debt
total debt
long-term debt
leverage
Akite, Jennifer
Determinants of Capital Structure: Evidence from Chinese firms
title Determinants of Capital Structure: Evidence from Chinese firms
title_full Determinants of Capital Structure: Evidence from Chinese firms
title_fullStr Determinants of Capital Structure: Evidence from Chinese firms
title_full_unstemmed Determinants of Capital Structure: Evidence from Chinese firms
title_short Determinants of Capital Structure: Evidence from Chinese firms
title_sort determinants of capital structure: evidence from chinese firms
topic Short-term debt
total debt
long-term debt
leverage
url https://eprints.nottingham.ac.uk/46831/