Why Don't Companies Borrow? Evidence from China's Listed Companies

In order to find out why some companies adopt an extreme capital structure of zero debt, we use the data of China's listed companies to analyze the features of those zero debt companies. Our empirical results show that some factors influence the choice of zero debt policy. Our analysis explains...

Full description

Saved in:
Bibliographic Details
Published in2013 Sixth International Conference on Business Intelligence and Financial Engineering pp. 231 - 235
Main Authors Xiao Liping, Li Zhe
Format Conference Proceeding
LanguageEnglish
Published IEEE 01.11.2013
Subjects
almost zero debt
Companies
Educational institutions
Finance
Industries
influncing factors
Investment
Profitability
zero debt
Online AccessGet full text

Cover

More Information
Summary:In order to find out why some companies adopt an extreme capital structure of zero debt, we use the data of China's listed companies to analyze the features of those zero debt companies. Our empirical results show that some factors influence the choice of zero debt policy. Our analysis explains what kind of company may adopt zero debt, and also contribute to the research of low leverage.
DOI:10.1109/BIFE.2013.49