Leverage, profitability and the ownership structures of listed firms in China
Paper
| Paper/Presentation Title | Leverage, profitability and the ownership structures of listed firms in China |
|---|---|
| Presentation Type | Paper |
| Authors | |
| Author | Hovey, Martin T. |
| Editors | Moshirian, Fariborz |
| Journal or Proceedings Title | Proceedings of the 20th Australasian Finance and Banking Conference (AFBC 2007) |
| Number of Pages | 26 |
| Year | 2007 |
| Place of Publication | Sydney, Australia |
| ISBN | 9780980476507 |
| Web Address (URL) of Paper | http://www.banking.unsw.edu.au/afbc |
| Conference/Event | 20th Annual Australasian Finance and Banking Conference (AFBC 2007) |
| Event Details | 20th Annual Australasian Finance and Banking Conference (AFBC 2007) Event Date 12 to end of 14 Dec 2007 Event Location Sydney, Australia |
| Abstract | The relationship between leverage, profitability and a firm’s ownership structure in China is investigated in this paper. It is an exploratory study based on all firms listed on the Shanghai and Shenzhen stock exchanges from 1999 to 2005. The results of the empirical analysis are reported in this paper. The most significant result is that foreign holdings are found to have a significant relationship with the leverage of listed firms in China. Whereas, somewhat unexpectedly, institutional ownership, through legal person holding companies, state ownership and private holdings are not found to have a significant relationship with the capital structure choices of firms in China. The results also suggest that some firm-specific factors that are relevant for explaining firm leverage generally referred to in studies in developed economies, such as profitability, growth opportunities, size and tax shields, are also relevant in China. The age of the firms and the industry to which they principally belong also has significant bearing. Yet direct government grants and the use of an internationally renowned auditing firm do not show a significant relationship. |
| Keywords | state-owned enterprises; ownership structures; capital structure; emerging markets; China |
| ANZSRC Field of Research 2020 | 350706. International business |
| 350799. Strategy, management and organisational behaviour not elsewhere classified | |
| 380115. Public economics - taxation and revenue | |
| Public Notes | No evidence of copyright restrictions. |
| Byline Affiliations | School of Accounting, Economics and Finance |
https://research.usq.edu.au/item/9y8zz/leverage-profitability-and-the-ownership-structures-of-listed-firms-in-china
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