Work

Applicability of financial theories of capital structure to the Chinese cultural context: A study of privately owned SMEs

Year: 2011

Type: article

Abstract: Using a new dataset of 1539 Chinese small and medium-sized enterprises this article investigates the firm-level determinants of capital structure and tests them against the predictions of financial theory. Firm size and profitability are both found to be related to leverage as posited by pecking-order theory. In contrast little support is found for the predicted relationship between asset structure and leverage. These findings are discussed in relationship to their Chinese cultural context. The managerial and policy implications of the research are then explored.

Source: International Small Business Journal Researching Entrepreneurship

DOI: 10.1177/0266242610370977

Authors: Alexander Newman, Sailesh Gunessee, Brian Hilton

Institution: University of Nottingham

Language: English

Topic: Corporate Finance and Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: green

OpenAlex ID: W2007906175

FWCI: 19.3

Cites: 66

Cited by: 87

Related to: 10