Economic Uncertainty and Firms' Capital Structure: Evidence from China
Risks
; 11(4):66, 2023.
Article
in English
| ProQuest Central | ID: covidwho-2295324
ABSTRACT
This article assesses the effects of economic uncertainty on the corporate capital structure of Chinese-listed firms using a panel dataset of 1138 firms with A-shares traded on the Shanghai Stock Exchange and Shenzhen Stock Exchange for the period 2006–2020 and fixed-effect regression analysis. Economic uncertainty had a negative influence on Chinese firms' debt ratios, especially for non-state-owned enterprises. Furthermore, firms' leverage decreased on average during the 2008 Great Recession, whereas it increased during the 2018–2019 US–China Trade War and the 2020 COVID-19 pandemic. The findings provide quantitative evidence of the effects of economic uncertainty on the capital structure of firms in a transition economy.
Insurance; capital structure; debt level; economic uncertainty; panel regression; state-owned enterprise; Stock exchanges; Great Recession; Economic policy; Bankruptcy; Investments; Market economies; Geopolitics; Costs; Global economy; Economic conditions; Securities markets; Pandemics; Trade disputes; Emerging markets; Gross Domestic Product--GDP; International finance; Economic growth; Coronaviruses; Corporate debt; COVID-19; United States--US; China; 52321:Securities and Commodity Exchanges
Full text:
Available
Collection:
Databases of international organizations
Database:
ProQuest Central
Language:
English
Journal:
Risks
Year:
2023
Document Type:
Article
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