| Título: | Capital Structure And Political Patronage: Evidence From China |
| Autores: |
Lim, Thian Cheng; Xi'an Jiaotong-Liverpool University, China Chai, Ruiyang; Bentley University, USA Zhao, Dan; Xi’an Jiaotong-Liverpool University, China Lim, Xiu Yun; National University of Singapore, Singapore |
| Fecha: | 2012-11-30 |
| Publicador: | American Journal of Business and Management |
| Fuente: |
 |
| Tipo: | Peer-reviewed Article |
| Tema: |
Economics, Stock exchange China, listed firms, capital structure, theory, leverage, financing characteristic, |
| Descripción: | This paper examines the effect of political patronage on capital structure of listed companies on the Shanghai Stock Exchange. An empirical study is conducted using a common linear regression method, advanced panel data regression and two way-effect panel data regression to test whether conventional capital structure decision theory applies to the Chinese economic environment. Large non-voting shares are used as proxy to represent political patronage. We find a positive and significant link between leverage and political patronage. We also find evidence of an indirect link between political patronage and capital structure through firm size and profitability. The result proved the existence of political patronage on Chinese listed firms. Chinese firms do not follow conventional trade-off theory, MM theory or pecking order. Chinese institutional characteristic affects the capital choice decision and the largely state ownerships do affect capital structure choices. We conclude that firms with strong political patronage prefer to raise equity first because they do not pay good dividends. Equity, debt and internal funds are their choice of capital structure. |
| Idioma: | Inglés |
1 Role of Discretionary Current Accruals on Earning Management- A Case Study: Publicly Traded Companies at Tehran Stock Exchange por Kordlouie, Hamidreza; International Qeshm Branch, Islamic Azad University, Iran,Jadidol Eslami, Davood; Accounting Department, Shahid Shamsipour Faculty, Iran,Mahmoudzadeh, Elmira; Accounting Department, South Tehran Branch, Islamic Azad University, Iran | 6 A Diagnostic Method for Procedural Justice por Flint, Douglas H.; Faculty of Business Administration, University of New Brunswick, Canada,Haley, Lynn M.; Faculty of Business Administration
University of New Brunswick, Canada,McNally, Jeffrey J.; Facultyof Business Administration
niversity of New Brunswick, Canada |
2 Risky Business in Conflict Zones: Opportunities and Threats in Post Conflict Economies por Hacioglu, Umit; Beykent University, Istanbul, Turkey,Celik, Ismail Erkan; Beykent University, Istanbul, Turkey,Dincer, Hasan; Beykent University, Istanbul, Turkey | 7 The Impact of Strategic Planning on Online Banking: An Empirical Study in Saudi Arabia por Abdalkrim, Gaafar Mohamed; Department of Business Administration, College of Science and Humanity Studies-Alsulial, Salman Bin Abdulaziz University, Saudi Arabiaa,Khrais, Laith Talal; Department of Business Administration, Salman Bin Abdulaziz University, Saudi Arabia |
3 Management Information System as a Catalyst to Organisational Performance in the 21st Century: A Study of Selected Banks in Nigeria por A, Obasan Kehinde; Department of Business Administration, Olabisi Onabanjo University, Ago – Iwoye, Ogun State, Nigeria,A, Soyebo Yusuf; Department of Accounting and Finance, Lagos State University, Ojo, Nigeria | 8 The Implementation Process of Nationalization of Workforce in Saudi Arabian Private Sector: A Review of “Nitaqat Scheme” por Sadi, Muhammad Asad; College of Industrial Management, King Fahd University of Petroleum and Minerals, Saudi Arabia |
4 Theorising the Failure of Technological Innovation Diffusion in the Nigerian Automobile Industry: The Case of Ford Motors Nigeria por Oigiagbe, Oseme; Leeds Metropolitan University, Leeds, UK,George, Olusoji; Department of Business Administration, University of Lagos, Nigeria,Owoyemi, Oluwakemi; Department of Industrial Relations and Personnel Management, University of Lagos, Nigeria | 9 An Analysis of Global Training and Experience Sharing in Multinational Companies por Moumita, Nishat; American International University, Dhaka, Bangladesh,Zaman, Laila; East West University, Dhaka, Bangladesh |
5 Challenges of Electronic Payment Systems in Ghana: The Case of e-ZWICH por Haruna, Issahaku; Department of Economics and Entrepreneurship Development, Faculty of Integrated Development Studies, University for Development Studies | 10 Globalization and the Economy: What Students Think por Borstorff, Patricia C; College of Commerce and Business Administration, Jacksonville State University, AL, USA,Hearn, Mark W; College of Commerce and Business Administration, Jacksonville State University, AL, USA,Turley, Falynn; College of Commerce and Business Administration, Jacksonville State University, AL, USA |