The determinants of leasing: Evidence from Chinese listed SMEs

Li, Tongxia (2016) The determinants of leasing: Evidence from Chinese listed SMEs. Masters thesis, Universiti Malaysia Sabah.

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Abstract

Although lease has been developed into one of the most important financing instruments, particularly for small- and medium-size enterprises (SMEs), few studies examine the determinants of leasing in China. This study investigates the determinants of leasing for a sample of China-based non-financial firms listed on the Shenzhen Stock Exchange SMEs Board over the period of 2009 to 2013. The methodologies employed in this study include ordinary lest square (OLS), fixed effects (FE) model, random effects (RE) model, and instrument variable techniques. The empirical results show that operating lease share increases with ownership, tax rate, and firm size; it decreases with debt ratio, tangibility, and dividend dummy. Non-manufacturing firms are more likely to lease (both operating lease and capital lease). Capital lease share increases with debt ratio and firm size. Firms with a higher financial distress tend to use more capital lease financing. The test results for total lease share are similar to those for operating lease share. Finally, the robustness checks by employing 2SLS-FE and 2SLS-RE show consistent results.

Item Type:	Thesis (Masters)
Keyword:	Leasing, Non-financial firms, China, Shenzhen stock exchange, SMEs board
Subjects:	H Social Sciences > HF Commerce > HF1-6182 Commerce > HF5001-6182 Business > HF5601-5689 Accounting. Bookkeeping
Department:	FACULTY > Faculty of Business, Economics and Accounting
Depositing User:	DG MASNIAH AHMAD -
Date Deposited:	07 Jun 2024 14:13
Last Modified:	07 Jun 2024 14:13
URI:	https://eprints.ums.edu.my/id/eprint/38748

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