CAPITAL STRUCTURE OF CHINESE FIRMS ACROSS DIFFERENT SECTORS DOES OWNERSHIP STRUCTURE MATTER

http://dx.doi.org/10.31703/ger.2019(IV-II).06      10.31703/ger.2019(IV-II).06      Published : Jun 2
Authored by : Muhammad YusufAmin , AmanatAli , BashirKhan

06 Pages : 70-82

References

  • Allen, F., Qian, J., & Qian, M. (2005). Law. finance and economic growth in China. Journal of Financial Economics, 77, 57-116.
  • Barclay, M. J., & Smith, C. W. (1995). The matuarity structure of corporate debt. The Journal of Finance, 50, 609-631.
  • Bernanke, B., Campbell, J., & Whited, T. (1990). U.S. corporate leverage: developments in 1987 and 1988. Brooking Papers on Economic Activity I, 255-278.
  • Bhabra, H. S., Liu, T., & Tirtiroglu, D. (2008). Capital structure choice in a nascent market; evidence from listed firms in china. Financial Managment, 37, 341-364.
  • Booth, L., Aivazian, V., Demirguc-Kunt, A., & Maksimovic, V. (2001). Capital Structures in Developing Countries. Journal of Finance, 56, 87-130.
  • Brandt, L., & Li, H. (2003). Bank discrimination in transition economies; ideology, information, or incentives? Journal of Comparative Economics, 31(3), 387-413
  • Chan, K., Wang, J., & Wei, K. J. (2004). Underpricing and long-term performance of IPOs in China. Journal of Corporate Finance, 10(3), 409-430.
  • Chang, C., Chen, X., & Liao, G. (2014). What are the eliably important determinants of capital structure in China? Pacific-Basin Finance Journal, 30, 87-113.
  • Chang, E. C., & Wong, S. M. (2004). Political control and performance in China's listed firms. Journal of Comparative Economics, 32, 617-636.
  • Chen, J. J. (2004). Determinants of capital structure of chinese-listed companies. Journal of Business Research, 57(12), 1341-1351.
  • Chen, J., Jiang, C., & Lin, Y. (2014). What determine firms capital structure in China? Managerial Finance, 40(10), 1024-1039.
  • Demirguc-Kunt, A., & Maksimovic, V. (1999). Institutions, financial markets, and firm debt maturity. Journal of Financial Economics, 54(3), 295-336.
  • Dong, Y., Liu, Z., Shen, Z., & Sun , Q. (2014). Political patronage and capital structure in China. Emerging Markets Finance and Trade, 50(3), 102-125.
  • Fama, E. F., & French, K. R. (2002). Testing trade-off and pecking order predictions about dividends and debt. The Review of Financial Studies, 15(1), 1-33.
  • Fan, J. P., Huang, J., & Zhu, N. (2009). Distress without bankruptcy: an emerging market perspective. Working Paper. Chinese University of Hong Kong.
  • Firth, M. A., Lin, C., & Wong, S. M. (2008). Leverage and investment under a statecontrol bank lending environment: evidence from China. Journal of Corporate Finance, 14(5), 642-653.
  • Frank, M. Z., & Goyal, V. K. (2009). Capital structure decisions: which factors are reliably important. Financial Management, 38, 1-37.
  • Gordon, R. H., & Li, W. (2003). Government as a discriminating monopolist in the financial market: the case of China. Journal of Public Economics, 87, 283-312.
  • Harris, M., & Raviv, A. (1991). The theory of capital structure. Journal of Finance, 46, 297-355.
  • Huang, G., & Song, F. M. (2006). The determinants of capital structure; evidence from china. China Economic Review, 17(1), 14-36.
  • Jensen, M. C. (1986). Agency cost of free cash flow, corporate finance and takeovers. American Economic Review, 76, 323-339.
  • Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behaviour, agency costs and ownership structure. Journal of Finacial Economics, 3, 306- 360.
  • Lemmon, M. L., & Zender, J. F. (2010). Debt capacity and test of capital structure theories. Journal of Financial and Quantitative Analysis, 45, 1161-1187.
  • Li, K., Yue, H., & Zhao, L. (2009). Ownership, institutions, and capital structure: evidence from China. Journal of Comparative Economics, 37(3), 471-490.
  • Li, S. (2001). Bankeuptcy law in China: lessons of the past twelve years. Harvard Asia Quarterly, 5, winter issue.
  • Mackay, P., & Phillips, G. (2005). How Does Industry Affect Firm Financial Structure? Review of Financial Studies, 18(4), 1433-1466
  • Michaelas, N., Chittenden, F., & Poutziouris, P. (1999). Financial policy and capital structure choice in U.K. SMEs: Empirical evidence from company panel data. Small Business Economics, 12(2), 113-130.
  • Myers, S. C. (1977). Determinants of corporate borrowing. Journal of Financial Economics, 5, 147-175.
  • Myers, S. C. (1984). The Capital Structure Puzzle. Journal of Finance, 39, 575-592.
  • Myers, S. C., & Majluf, N. S. (1984). Corporate finance and investment decisions when firms have information investors do not have. Journal of Financial Economics, 13, 187-221.
  • Qian, Y., Tian, Y., & Wirjanto, T. S. (2009). Do chinese publicly listed companies adjust their capital structure toward a target level? Chinese Economic Review, 20(4), 662-676.
  • Rajan, R. G., & Zingales, L. (1995). what do we know about capital structure? some eveidence from international data. Journal of finance, 50, 1421-1460.
  • Roodman, D. (2006). How to do xtabond2: an introduction to ''Difference'' and ''System'' GMM in stata. Centeral for Global Development Working Paper Number 103.
  • Scott, J. H. (1977). Bankruptcy, Secured Debt, and Optimal Capital Structure. Journal of Finance, 32, 1-19.
  • Smith, C., & Watts, R. (1992). The investment opportunity set and corporate financing, dividend and compensation policies. Journal of Financial Economies, 32(3), 263- 292.
  • Sun, Q., & Tong, W. H. (2003). China share issue privatization: the extent of its success. Journal of Financial Economics, 70(2), 183-222.
  • Talberg, M., Winge, C., Frydenberg, S., & Westgaard, S. (2008). Capital Structure Across Industries. International Journal of the Economics of Business, 15(2), 181-200.
  • Tian, G. L. (2001). State shareholding and the value of China's firms. Working paper. London Business School, London, Uk.
  • Wald, J. K. (1999). How Firm Characteristics Affect Capital Structure: An International Comparison. Journal of financial research, 22, 161-187.
  • White, M. J. (1993). Corporate bankruptcy: A U.S.- European comparison, Working paper. University of Michigan
  • Zhao, J., & Tang, J. (2018). Industrial structure change and economic growth: A ChinaRussia Comparison. China Economic Review, 47, 219-233.
  • Zhengwei, W. (2013). Optimal capital structure: case of SOE versus private listed corporation. Chinese Management Studies, 7, 604-616
  • Zou, H., & Xiao, Z. X. (2006). The financing behaviour of listed Chinese firms. The British Accounting Review, 38(3), 239-258.

References

  • Allen, F., Qian, J., & Qian, M. (2005). Law. finance and economic growth in China. Journal of Financial Economics, 77, 57-116.
  • Barclay, M. J., & Smith, C. W. (1995). The matuarity structure of corporate debt. The Journal of Finance, 50, 609-631.
  • Bernanke, B., Campbell, J., & Whited, T. (1990). U.S. corporate leverage: developments in 1987 and 1988. Brooking Papers on Economic Activity I, 255-278.
  • Bhabra, H. S., Liu, T., & Tirtiroglu, D. (2008). Capital structure choice in a nascent market; evidence from listed firms in china. Financial Managment, 37, 341-364.
  • Booth, L., Aivazian, V., Demirguc-Kunt, A., & Maksimovic, V. (2001). Capital Structures in Developing Countries. Journal of Finance, 56, 87-130.
  • Brandt, L., & Li, H. (2003). Bank discrimination in transition economies; ideology, information, or incentives? Journal of Comparative Economics, 31(3), 387-413
  • Chan, K., Wang, J., & Wei, K. J. (2004). Underpricing and long-term performance of IPOs in China. Journal of Corporate Finance, 10(3), 409-430.
  • Chang, C., Chen, X., & Liao, G. (2014). What are the eliably important determinants of capital structure in China? Pacific-Basin Finance Journal, 30, 87-113.
  • Chang, E. C., & Wong, S. M. (2004). Political control and performance in China's listed firms. Journal of Comparative Economics, 32, 617-636.
  • Chen, J. J. (2004). Determinants of capital structure of chinese-listed companies. Journal of Business Research, 57(12), 1341-1351.
  • Chen, J., Jiang, C., & Lin, Y. (2014). What determine firms capital structure in China? Managerial Finance, 40(10), 1024-1039.
  • Demirguc-Kunt, A., & Maksimovic, V. (1999). Institutions, financial markets, and firm debt maturity. Journal of Financial Economics, 54(3), 295-336.
  • Dong, Y., Liu, Z., Shen, Z., & Sun , Q. (2014). Political patronage and capital structure in China. Emerging Markets Finance and Trade, 50(3), 102-125.
  • Fama, E. F., & French, K. R. (2002). Testing trade-off and pecking order predictions about dividends and debt. The Review of Financial Studies, 15(1), 1-33.
  • Fan, J. P., Huang, J., & Zhu, N. (2009). Distress without bankruptcy: an emerging market perspective. Working Paper. Chinese University of Hong Kong.
  • Firth, M. A., Lin, C., & Wong, S. M. (2008). Leverage and investment under a statecontrol bank lending environment: evidence from China. Journal of Corporate Finance, 14(5), 642-653.
  • Frank, M. Z., & Goyal, V. K. (2009). Capital structure decisions: which factors are reliably important. Financial Management, 38, 1-37.
  • Gordon, R. H., & Li, W. (2003). Government as a discriminating monopolist in the financial market: the case of China. Journal of Public Economics, 87, 283-312.
  • Harris, M., & Raviv, A. (1991). The theory of capital structure. Journal of Finance, 46, 297-355.
  • Huang, G., & Song, F. M. (2006). The determinants of capital structure; evidence from china. China Economic Review, 17(1), 14-36.
  • Jensen, M. C. (1986). Agency cost of free cash flow, corporate finance and takeovers. American Economic Review, 76, 323-339.
  • Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behaviour, agency costs and ownership structure. Journal of Finacial Economics, 3, 306- 360.
  • Lemmon, M. L., & Zender, J. F. (2010). Debt capacity and test of capital structure theories. Journal of Financial and Quantitative Analysis, 45, 1161-1187.
  • Li, K., Yue, H., & Zhao, L. (2009). Ownership, institutions, and capital structure: evidence from China. Journal of Comparative Economics, 37(3), 471-490.
  • Li, S. (2001). Bankeuptcy law in China: lessons of the past twelve years. Harvard Asia Quarterly, 5, winter issue.
  • Mackay, P., & Phillips, G. (2005). How Does Industry Affect Firm Financial Structure? Review of Financial Studies, 18(4), 1433-1466
  • Michaelas, N., Chittenden, F., & Poutziouris, P. (1999). Financial policy and capital structure choice in U.K. SMEs: Empirical evidence from company panel data. Small Business Economics, 12(2), 113-130.
  • Myers, S. C. (1977). Determinants of corporate borrowing. Journal of Financial Economics, 5, 147-175.
  • Myers, S. C. (1984). The Capital Structure Puzzle. Journal of Finance, 39, 575-592.
  • Myers, S. C., & Majluf, N. S. (1984). Corporate finance and investment decisions when firms have information investors do not have. Journal of Financial Economics, 13, 187-221.
  • Qian, Y., Tian, Y., & Wirjanto, T. S. (2009). Do chinese publicly listed companies adjust their capital structure toward a target level? Chinese Economic Review, 20(4), 662-676.
  • Rajan, R. G., & Zingales, L. (1995). what do we know about capital structure? some eveidence from international data. Journal of finance, 50, 1421-1460.
  • Roodman, D. (2006). How to do xtabond2: an introduction to ''Difference'' and ''System'' GMM in stata. Centeral for Global Development Working Paper Number 103.
  • Scott, J. H. (1977). Bankruptcy, Secured Debt, and Optimal Capital Structure. Journal of Finance, 32, 1-19.
  • Smith, C., & Watts, R. (1992). The investment opportunity set and corporate financing, dividend and compensation policies. Journal of Financial Economies, 32(3), 263- 292.
  • Sun, Q., & Tong, W. H. (2003). China share issue privatization: the extent of its success. Journal of Financial Economics, 70(2), 183-222.
  • Talberg, M., Winge, C., Frydenberg, S., & Westgaard, S. (2008). Capital Structure Across Industries. International Journal of the Economics of Business, 15(2), 181-200.
  • Tian, G. L. (2001). State shareholding and the value of China's firms. Working paper. London Business School, London, Uk.
  • Wald, J. K. (1999). How Firm Characteristics Affect Capital Structure: An International Comparison. Journal of financial research, 22, 161-187.
  • White, M. J. (1993). Corporate bankruptcy: A U.S.- European comparison, Working paper. University of Michigan
  • Zhao, J., & Tang, J. (2018). Industrial structure change and economic growth: A ChinaRussia Comparison. China Economic Review, 47, 219-233.
  • Zhengwei, W. (2013). Optimal capital structure: case of SOE versus private listed corporation. Chinese Management Studies, 7, 604-616
  • Zou, H., & Xiao, Z. X. (2006). The financing behaviour of listed Chinese firms. The British Accounting Review, 38(3), 239-258.

Cite this article

APA

    APA : Amin, M. Y., Ali, A., & Khan, B. (2019). Capital Structure of Chinese Firms Across different Sectors: Does Ownership Structure Matter?. Global Economics Review, IV(II), 70-82. https://doi.org/10.31703/ger.2019(IV-II).06

CHICAGO

    CHICAGO : Amin, Muhammad Yusuf, Amanat Ali, and Bashir Khan. 2019. "Capital Structure of Chinese Firms Across different Sectors: Does Ownership Structure Matter?." Global Economics Review, IV (II): 70-82 doi: 10.31703/ger.2019(IV-II).06

HARVARD

    HARVARD : AMIN, M. Y., ALI, A. & KHAN, B. 2019. Capital Structure of Chinese Firms Across different Sectors: Does Ownership Structure Matter?. Global Economics Review, IV, 70-82.

MHRA

    MHRA : Amin, Muhammad Yusuf, Amanat Ali, and Bashir Khan. 2019. "Capital Structure of Chinese Firms Across different Sectors: Does Ownership Structure Matter?." Global Economics Review, IV: 70-82

MLA

    MLA : Amin, Muhammad Yusuf, Amanat Ali, and Bashir Khan. "Capital Structure of Chinese Firms Across different Sectors: Does Ownership Structure Matter?." Global Economics Review, IV.II (2019): 70-82 Print.

OXFORD

    OXFORD : Amin, Muhammad Yusuf, Ali, Amanat, and Khan, Bashir (2019), "Capital Structure of Chinese Firms Across different Sectors: Does Ownership Structure Matter?", Global Economics Review, IV (II), 70-82

TURABIAN

    TURABIAN : Amin, Muhammad Yusuf, Amanat Ali, and Bashir Khan. "Capital Structure of Chinese Firms Across different Sectors: Does Ownership Structure Matter?." Global Economics Review IV, no. II (2019): 70-82. https://doi.org/10.31703/ger.2019(IV-II).06