Leverage and capital structure determinants of Chinese listed companies

Arbeitspapier

Total debt in the People's Republic of China has increased significantly in recent years, mostly on account of nonfinancial corporate debt. Earning and the financial performance of corporate firms have weakened, and so has the asset quality of the financial sector. This paper assesses the financial fragility of the Chinese economy by looking at risk factors in the nonfinancial sector. We apply quantile regressions to a rich dataset of Chinese listed companies contained in Standard & Poor's IQ Capital database. We find higher sensitivity over time of corporate leverage to some of its key determinants, particularly for firms at the upper margin of the distribution. In particular, profitability increasingly acts as a curb on corporate leverage. At a time of falling profitability across the Chinese nonfinancial corporate sector, this eases the brake on leverage and may contribute to its continuing increase.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: ADB Economics Working Paper Series ; No. 509

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Financial Crises ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages ; Fiscal Policies and Behavior of Economic Agents: General ; National Budget, Deficit, and Debt: General
• Thema: corporate debt ; debt sustainability ; panel quantile regression ; People's Republic of China

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Ferrarini, Benno ; Hinojales, Marthe ; Scaramozzino, Pasquale
• Ereignis: Veröffentlichung
• (wer): Asian Development Bank (ADB)
• (wo): Manila
• (wann): 2017

Weitere Informationen

• DOI: doi:10.22617/WPS178640-2
• Handle: http://hdl.handle.net/10419/169340
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ