Title :
Effects of Information Asymmetry on Listed Companies´ Debt Financing: Evidence from China
Author :
Feng Yumei ; Wang Chunfeng ; Fang Zhenming
Author_Institution :
Sch. of Banking & Finance, Shandong Finance Univ., Jinan
Abstract :
According to the pecking order theory, among the company´s external financing channels, debt financing should be selected firstly. Based on financial market microstructure measuring method of information asymmetry and Fama- MacBeth regression technology, the study finds that Chinese listed companies´ ratio of debt increases with information asymmetry. When listed companies´ financial deficit is higher, the positive relationship between debt ratio and information asymmetry is significant.
Keywords :
financial management; regression analysis; China; Fama- MacBeth regression technology; companies debt financing; financial market microstructure; information asymmetry; pecking order theory; Banking; Costs; Finance; Friction; Microstructure; Random variables; Testing;
Conference_Titel :
Wireless Communications, Networking and Mobile Computing, 2007. WiCom 2007. International Conference on
Conference_Location :
Shanghai
Print_ISBN :
978-1-4244-1311-9
DOI :
10.1109/WICOM.2007.983
