Gearing of Chinese listed companies

摘要

This paper studies the determinants of gearing of 558 Chinese listedudcompanies between 2007 and 2012. The Least Square Dummy Variableud(LSDV) model is employed to investigate the influence of related variables onudgearing. Explanatory variables include: profitability, size, growthudopportunity, tangibility, liquidity, non-debt tax shield, percentage of tradableudshares, proportion of top ten share- holders holding, tax rate and uniquenessudwhile controlling for firm factors and industry effects. Two measures are usedudto measure gearing: total debt ratio and long-term debt ratio. Our results haveudinteresting implications for corporate capital structure on other fast developingudnations as well.