Author ORCID Identifier

Jinlan Ni

Document Type

Article

Publication Date

2012

Publication Title

Annals of Financial Economics

Volume

7

Issue

1

Abstract

Using data from 1,217 publicly traded Chinese companies from 1994–2006, we show that the capital financing behavior of Chinese firms deviates substantially from the pecking order theory in that equity issues are always the preferred financing source for funding requirements. We further document the existence of a stylized asymmetric financing pattern — equity issues are used much more heavily over debt issues under the condition of a fund flow surplus versus a fund flow deficit, which is the result of Chinese firms selecting the degree of inherent equity-issue preference feasible to pursue given their fund flow condition.

Comments

Electronic version of an article published as Annals of Financial Economics, Volume 7, Issue 1, 2012, 1250004 https://doi.org/10.1142/S2010495212500042

© World Scientific Publishing Company, https://www.worldscientific.com/worldscinet/afe.

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