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

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06 Pages : 70-82

http://dx.doi.org/10.31703/ger.2019(IV-II).06      10.31703/ger.2019(IV-II).06      Published : Jun 2019

Capital Structure of Chinese Firms Across different Sectors: Does Ownership Structure Matter?

Abstract

    This study estimates the effect of state ownership and other firmspecific variables on the capital structure of Chinese listed industries operating in different sectors. State ownership and leverage are both negatively and positively associated. The negative association of state ownership with leverage was found in construction, metals and metal products, services and transport sectors, while positive association was found in chemical, rubber, plastic & non-metallic products and machinery & other equipment. Size and profitability are the other most prominent factors affecting capital structure of the firms across different sectors in China. Hence, this study shows that in addition to other firm specific variables, ownership structure also determines capital structure of Chinese firms.

    Capital Structure, Corporate Ownership, State-Owned Enterprises, China.

    (1) Muhammad Yusuf Amin
    Lecturer, Institute of Business Studies and Leadership, Abdul Wali Khan University Mardan, KP, Pakistan.
    (2) Amanat Ali
    Assistant Professor, School of Economics, Quaid-i-Azam University, Islamabad, Pakistan
    (3) Bashir Khan
    PhD Scholar, School of Economics, Quaid-i-Azam University, Islamabad, Pakistan
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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