IDEAS home Printed from https://ideas.repec.org/a/mes/emfitr/v50y2014is5p229-244.html
   My bibliography  Save this article

Credit Crunch and Target Capital Structure: Empirical Studies Based on Natural Experimentin China

Author

Listed:
  • Hong Zhang
  • Fei Yang
  • Fenjie Long

Abstract

Data from China’s credit crunch, which started in 2007, is utilized to establish a natural experiment to investigate the impact of the credit crunch on target capital structures. The sample consists of 1,128 listed companies in China during the period 2000–2011. The interest-bearing debt to total assets ratio is used as a representative indicator for capital structures. The results indicate that the credit crunch was associated with a decrease in the target debt ratios for all listed companies. Small firms, privately owned enterprises, and firms with weak mortgage capabilities responded more sensitively to the credit crunch by showing a substantial decrease in target debt ratios.

Suggested Citation

  • Hong Zhang & Fei Yang & Fenjie Long, 2014. "Credit Crunch and Target Capital Structure: Empirical Studies Based on Natural Experimentin China," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 50(S5), pages 229-244, September.
    • Handle: RePEc:mes:emfitr:v:50:y:2014:i:s5:p:229-244
    DOI: 10.2753/REE1540-496X5005S516
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.2753/REE1540-496X5005S516
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.2753/REE1540-496X5005S516?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:emfitr:v:50:y:2014:i:s5:p:229-244. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MREE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.