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The Determinants of Capital Structure Decisions: Evidence from Chinese Listed Companies

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  • Sunitha Vijayakumaran
  • Ratnam Vijayakumaran

Abstract

In this paper, we examine the determinants of leverage in the context of China using a sample of 1844 Chinese non-financial firms over the period 2003 to 2010. This study shows that that the average leverage ratio of Chinese listed firms is similar to those observed in other developing countries. The study also finds thatsize, tangibility,volatilityand firm age are positively and significantly associated with leverage. Furthermore, firm’s profitability has statistically significantnegativeimpact on leverage. Furthermore, we find that we find that firm size, profitability, tangibility, volatility and firm age are the robust determinants of leverage of Chinese listed firms.

Suggested Citation

  • Sunitha Vijayakumaran & Ratnam Vijayakumaran, 2018. "The Determinants of Capital Structure Decisions: Evidence from Chinese Listed Companies," Asian Journal of Finance & Accounting, Macrothink Institute, vol. 10(2), pages 114132-1141, December.
    • Handle: RePEc:mth:ajfa88:v:10:y:2018:i:2:p:114132
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    References listed on IDEAS

    as
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    JEL classification:

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

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