| Summary: | This paper conducts an empirical analysis with panel data analysis method on sample financial data collected from more than 3,000 publicly Chinese listed companies of A-share from 2010 to 2019 to study the determinations of company capital structure. The results demonstrate that the growth opportunities, collateral value of assets, company size are significantly positively correlated with leverages. Meanwhile, liquidity, profitability, non-debt tax shield and product uniqueness have negative correlation with debt ratios. This paper argues that Chinese capital structure can also be explained by some viewpoints of modern financial theories, due to Chinese enterprises also have some enterprise-specific factors related to capital structure. This paper makes a more detailed study of the determinants of China's capital structure.
|
|---|