Impact of Credit Rating on Capital Structure Decision: Evidence from China
Even the discussion about the determinants of capital structure has developed for decades, it is until recent that the attention has been extended from demand side effects to supply side effects. This paper examines impact of credit rating as an important supply side determinant on capital structure...
| Main Author: | |
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2018
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| Online Access: | https://eprints.nottingham.ac.uk/53687/ |
| _version_ | 1848798973594173440 |
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| author | Xu, Xinyi |
| author_facet | Xu, Xinyi |
| author_sort | Xu, Xinyi |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | Even the discussion about the determinants of capital structure has developed for decades, it is until recent that the attention has been extended from demand side effects to supply side effects. This paper examines impact of credit rating as an important supply side determinant on capital structure in Chinese market. My sample data consists of the 42 rated listed companies over the ten-year period from 2008 to 2017. Through using quantitative research method including multivariate analysis, pooled ordinary least squares regression and logistic regression, I confirm that firm with credit rating and the consequent access to public bond market have higher leverage ratio than their unrated counterparts. While with respect to the impact of different rating level and the potential rating change, there is no statistically significant evidence to support their correlation with capital structure.
Key words: credit rating, capital structure, leverage |
| first_indexed | 2025-11-14T20:28:17Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-53687 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T20:28:17Z |
| publishDate | 2018 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-536872022-03-11T16:24:21Z https://eprints.nottingham.ac.uk/53687/ Impact of Credit Rating on Capital Structure Decision: Evidence from China Xu, Xinyi Even the discussion about the determinants of capital structure has developed for decades, it is until recent that the attention has been extended from demand side effects to supply side effects. This paper examines impact of credit rating as an important supply side determinant on capital structure in Chinese market. My sample data consists of the 42 rated listed companies over the ten-year period from 2008 to 2017. Through using quantitative research method including multivariate analysis, pooled ordinary least squares regression and logistic regression, I confirm that firm with credit rating and the consequent access to public bond market have higher leverage ratio than their unrated counterparts. While with respect to the impact of different rating level and the potential rating change, there is no statistically significant evidence to support their correlation with capital structure. Key words: credit rating, capital structure, leverage 2018-09-04 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/53687/1/%E8%AE%BA%E6%96%87%E6%8F%90%E4%BA%A4.pdf Xu, Xinyi (2018) Impact of Credit Rating on Capital Structure Decision: Evidence from China. [Dissertation (University of Nottingham only)] credit rating capital structure leverage |
| spellingShingle | credit rating capital structure leverage Xu, Xinyi Impact of Credit Rating on Capital Structure Decision: Evidence from China |
| title | Impact of Credit Rating on Capital Structure Decision: Evidence from China |
| title_full | Impact of Credit Rating on Capital Structure Decision: Evidence from China |
| title_fullStr | Impact of Credit Rating on Capital Structure Decision: Evidence from China |
| title_full_unstemmed | Impact of Credit Rating on Capital Structure Decision: Evidence from China |
| title_short | Impact of Credit Rating on Capital Structure Decision: Evidence from China |
| title_sort | impact of credit rating on capital structure decision: evidence from china |
| topic | credit rating capital structure leverage |
| url | https://eprints.nottingham.ac.uk/53687/ |