Chinese firms' leverage determined by size, profitability, and firm age.
The study looked at what factors influence how much debt Chinese companies take on. They analyzed data from 1844 Chinese companies between 2003 and 2010. The research found that bigger, more stable, and older companies tend to have more debt. Profitable companies, on the other hand, tend to have less debt. Overall, the size, profitability, stability, age, and assets of a company are important factors in determining how much debt it takes on.