Political Patronage and Capital Structure in China

被引:21
作者
Dong, Yan [1 ]
Liu, Zhentao [2 ]
Shen, Zhe [3 ]
Sun, Qian [4 ]
机构
[1] Southwestern Univ Finance & Econ, Res Inst Econ & Management, Chengdu, Peoples R China
[2] Xiamen Univ, Inst Financial & Accounting Studies, Xiamen, Peoples R China
[3] Xiamen Univ, Sch Management, Xiamen, Peoples R China
[4] Fudan Univ, Sch Management, Shanghai 200433, Peoples R China
基金
中国国家自然科学基金;
关键词
capital structure; China; emerging markets; leverage; AGENCY COSTS; OWNERSHIP; DETERMINANTS; FIRMS; PERFORMANCE; CONNECTIONS; DECISIONS; LEVERAGE; FINANCE;
D O I
10.2753/REE1540-496X500307
中图分类号
F [经济];
学科分类号
02 ;
摘要
In this paper, we empirically examine the determinants of capital structure in China, using 1,006,395 firm-year observations spanning 1998-2007. Consistent with the general findings in developed markets, we find that the long-term debt ratio is positively related to firm size and asset tangibility while negatively related to profitability and growth opportunities. We also conclude that the long-term debt ratio is positively related to state ownership and legal-person institutional ownership, consistent with the political patronage hypothesis that firms in which the government has more of a stake are more likely to incur long-term debts. These results are robust to a battery of validity checks.
引用
收藏
页码:102 / 125
页数:24
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