Yang, Y. and Albaity, M. and Hassan, C.H. (2015) Dynamic capital structure in China: Determinants and adjustment speed. Investment Management and Financial Innovations, 12 (2). pp. 195-204. ISSN 1810-4967,
Full text not available from this repository.Abstract
This paper examines the determinants and adjustment speed of capital structure by using a dynamic panel data, two-step system GMM estimator with the latest data covering the years 2008-2013 in China. The results present a significant difference in the determinants and adjustment speed of capital structure compared to past studies. The authors find that firms adjust debt ratio towards leverage targets at speeds of 37% per annum, yielding a half-life of 1.52 years. Next, it is found that the profitability is no longer a core determinant of capital structure in Chinese listed firms. In addition, the results point out that the capital structure decision is not only affected by financial variables, but is also significantly influenced by human resource factors.
| Item Type: | Article |
|---|---|
| Funders: | UNSPECIFIED |
| Uncontrolled Keywords: | China; Developing country; Dynamic capital structure; GMM |
| Subjects: | H Social Sciences > HF Commerce H Social Sciences > HF Commerce > Business |
| Divisions: | Faculty of Business and Economics |
| Depositing User: | Ms. Juhaida Abd Rahim |
| Date Deposited: | 26 Sep 2018 01:52 |
| Last Modified: | 26 Sep 2018 01:52 |
| URI: | http://eprints.um.edu.my/id/eprint/19408 |
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