How Financing structure Affects Firm Performance: Empirical Evidence from Chinese Automobile Listed Companies

This paper examines the effect of financing structure on firm performance in the context of Chinese automobile listed companies. The secondary dataset consists of 133 Chinese A-share listed firms in the automobile industry between 2009 and 2019, total up to 11 years’ period is collected from the CSM...

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Main Author: YIXUAN, LYU
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2020
Online Access:https://eprints.nottingham.ac.uk/62821/
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author YIXUAN, LYU
author_facet YIXUAN, LYU
author_sort YIXUAN, LYU
building Nottingham Research Data Repository
collection Online Access
description This paper examines the effect of financing structure on firm performance in the context of Chinese automobile listed companies. The secondary dataset consists of 133 Chinese A-share listed firms in the automobile industry between 2009 and 2019, total up to 11 years’ period is collected from the CSMAR database and used as a research sample in this paper. There are six determinants, namely internal financing rate, current liability ratio, the asset to liability ratio, commercial credit rate, bank loan ratio, and ownership concentration. In particular, this research not only uses the traditional financial indicator, ROA as the proxy of firm performance but also employs the factor analysis to obtain a comprehensive factor of firm performance. Relied on the result of the Hausman test, the fixed effect model is applied to compare those two models that two different dependent variables regress on the same six independent variables. It is found that there exists a statistically significant association between current liability ratio, the asset to liability ratio, ownership concentration, commercial credit rate, and firm performance. while the bank loan ratio does not emerge a statistically significant effect on firm performance.
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institution University of Nottingham Malaysia Campus
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language English
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spelling nottingham-628212023-04-18T13:05:52Z https://eprints.nottingham.ac.uk/62821/ How Financing structure Affects Firm Performance: Empirical Evidence from Chinese Automobile Listed Companies YIXUAN, LYU This paper examines the effect of financing structure on firm performance in the context of Chinese automobile listed companies. The secondary dataset consists of 133 Chinese A-share listed firms in the automobile industry between 2009 and 2019, total up to 11 years’ period is collected from the CSMAR database and used as a research sample in this paper. There are six determinants, namely internal financing rate, current liability ratio, the asset to liability ratio, commercial credit rate, bank loan ratio, and ownership concentration. In particular, this research not only uses the traditional financial indicator, ROA as the proxy of firm performance but also employs the factor analysis to obtain a comprehensive factor of firm performance. Relied on the result of the Hausman test, the fixed effect model is applied to compare those two models that two different dependent variables regress on the same six independent variables. It is found that there exists a statistically significant association between current liability ratio, the asset to liability ratio, ownership concentration, commercial credit rate, and firm performance. while the bank loan ratio does not emerge a statistically significant effect on firm performance. 2020-12-01 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/62821/1/20131407-Finance%20%26%20Investment%20Dissertation%20%28BUSI4020%20UNUK%29%20%28SUM1%2019-20%29-How%20Financing%20structure%20Affects%20Firm%20Performance%20%20Empirical%20Evidence%20from%20Chinese%20Automobile%20Listed%20Companies%20.pdf YIXUAN, LYU (2020) How Financing structure Affects Firm Performance: Empirical Evidence from Chinese Automobile Listed Companies. [Dissertation (University of Nottingham only)]
spellingShingle YIXUAN, LYU
How Financing structure Affects Firm Performance: Empirical Evidence from Chinese Automobile Listed Companies
title How Financing structure Affects Firm Performance: Empirical Evidence from Chinese Automobile Listed Companies
title_full How Financing structure Affects Firm Performance: Empirical Evidence from Chinese Automobile Listed Companies
title_fullStr How Financing structure Affects Firm Performance: Empirical Evidence from Chinese Automobile Listed Companies
title_full_unstemmed How Financing structure Affects Firm Performance: Empirical Evidence from Chinese Automobile Listed Companies
title_short How Financing structure Affects Firm Performance: Empirical Evidence from Chinese Automobile Listed Companies
title_sort how financing structure affects firm performance: empirical evidence from chinese automobile listed companies
url https://eprints.nottingham.ac.uk/62821/