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

Author

Listed:
  • Muhammad Yusuf Amin

    (Lecturer, Institute of Business Studies and Leadership, Abdul Wali Khan University Mardan, KP, Pakistan.)

  • Amanat Ali

    (Assistant Professor, School of Economics, Quaid-i-Azam University, Islamabad, Pakistan)

  • Bashir Khan

    (PhD Scholar, School of Economics, Quaid-i-Azam University, Islamabad, Pakistan)

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.

Suggested Citation

  • Muhammad Yusuf Amin & Amanat Ali & Bashir Khan, 2019. "Capital Structure of Chinese Firms Across different Sectors: Does Ownership Structure Matter?," Global Economics Review, Humanity Only, vol. 4(2), pages 70-82, June.
    • Handle: RePEc:aaw:journl:v:4:y:2019:i:2:p:70-82
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    References listed on IDEAS

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    More about this item

    Keywords

    Capital Structure; Corporate Ownership; State-Owned Enterprises; China.;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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