Title :
Why Don´t Companies Borrow? Evidence from China´s Listed Companies
Author :
Xiao Liping ; Li Zhe
Author_Institution :
Sch. of Math. & Stat., Northeastern Univ. at Qinhuangdao, Qinhuangdao, China
Abstract :
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.
Keywords :
credit transactions; microeconomics; China listed companies; borrowing; capital structure; zero debt policy; Companies; Educational institutions; Finance; Industries; Investment; Profitability; almost zero debt; influncing factors; zero debt;
Conference_Titel :
Business Intelligence and Financial Engineering (BIFE), 2013 Sixth International Conference on
Conference_Location :
Hangzhou
Print_ISBN :
978-1-4799-4778-2
DOI :
10.1109/BIFE.2013.49
