Open AccessCapital Structure of Chinese Firms Across different Sectors: Does Ownership Structure Matter?
Author(s) -
Muhammad Yusuf Amin,
Amanat Ali,
Bashir Khan
Publication year - 2019
Publication title -
global economics review
Language(s) - English
Resource type - Journals
eISSN - 2707-0093
pISSN - 2521-2974
DOI - 10.31703/ger.2019(iv-ii).06
Subject(s) - capital structure , leverage (statistics) , business , profitability index , state ownership , china , monetary economics , industrial organization , finance , emerging markets , economics , debt , machine learning , computer science , political science , law
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.