Title :
Research on the Effect of Debt Financing in Electric Power Listed Company
Author :
Liu Xiao-yan ; Li Tao
Author_Institution :
Sch. of Bus. Adm., North China Electr. Power Univ., Beijing
Abstract :
This paper investigates the effect of debt financing in electric power listed company through an empirical research with the regression analysis method. According to the capital structure theory, the effect of debt financing lies in financial leverage effect, the tax shield effect and the company governance effect. Considering the characteristics of the electric power industry, we makes a detailed study relying on the data of electric power listed companies from 2004-2006, which belongs to the security markets of Shanghai and Shenzhen. The empirical results show that, for the companies with strong profitability, raising the debt ratio can contribute to the improvement of the effect of debt fiancing; for the companies with poor profitability, it will cause worse effect. These researches help to make suggestions for improving the effect of financing.
Keywords :
corporate acquisitions; electricity supply industry; financial management; power generation economics; profitability; regression analysis; Shanghai; Shenzhen; capital structure theory; company governance effect; debt financing effect; electric power industry; electric power listed company; financial leverage effect; profitability; regression analysis method; security markets; tax shield effect; Companies; Data security; Financial management; Marketing and sales; Power generation economics; Power industry; Profitability; Regression analysis; Research and development management; Risk management; debt financing; effect of debt financing; electric power listed company;
Conference_Titel :
Risk Management & Engineering Management, 2008. ICRMEM '08. International Conference on
Conference_Location :
Beijing
Print_ISBN :
978-0-7695-3402-2
DOI :
10.1109/ICRMEM.2008.46
