This study looked at 45 IT companies in China to find out what influences the way these companies decide to fund themselves. They found that the size and profitability of a company play a big role in how it manages its money. Companies that are growing, have tax benefits other than loans, and are good at paying debts tend to use less debt for financing. Special regulations that apply to a company and the value of its assets for backing up loans also affect how it chooses to finance itself.