Business, Management and Accounting
8 years ago

Size, Profitability, and Risk Key Factors in Chinese Companies' Capital Structure.

1 view
THE DETERMINANTS OF CAPITAL STRUCTURE IN CHINESE LISTED COMPANIES
Mou Wang

Paper Summary

The article investigates what factors influence how Chinese companies choose to finance their operations. By studying 1230 listed companies from 2005 to 2010, the researchers found that company size, profitability, business risk, and tax benefits play a significant role in determining their capital structure. On the other hand, factors like growth opportunities and asset structure do not have a significant impact on how companies decide to raise funds.

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