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

Version 2 2024-06-13, 09:35
Version 1 2016-01-04, 13:47
journal contribution
posted on 2024-06-13, 09:35 authored by A Newman, S Gunessee, B Hilton
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. © SAGE Publications 2010.

History

Journal

International small business journal

Volume

30

Pagination

65-83

Location

London, Eng.

ISSN

1741-2870

Language

eng

Publication classification

C1.1 Refereed article in a scholarly journal, C Journal article

Copyright notice

2010, Sage Publications

Issue

1

Publisher

Sage