The determinants of leasing: Evidence from Chinese listed SMEs

Although lease has been developed into one of the most important financing instruments, particularly for small- and medium-size enterprises (SMEs), few studies examine the determinants of leasing in China. This study investigates the determinants of leasing for a sample of China-based non-financial...

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Main Author:	Li, Tongxia
Format:	Thesis
Language:	English English
Published:	2016
Subjects:	HF5601-5689 Accounting Bookkeeping
Online Access:	https://eprints.ums.edu.my/id/eprint/38748/1/24%20PAGES.pdf https://eprints.ums.edu.my/id/eprint/38748/2/FULLTEXT.pdf
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id	my-ums-ep.38748
record_format	uketd_dc
spelling	my-ums-ep.387482024-06-07T06:13:20Z The determinants of leasing: Evidence from Chinese listed SMEs 2016 Li, Tongxia HF5601-5689 Accounting. Bookkeeping Although lease has been developed into one of the most important financing instruments, particularly for small- and medium-size enterprises (SMEs), few studies examine the determinants of leasing in China. This study investigates the determinants of leasing for a sample of China-based non-financial firms listed on the Shenzhen Stock Exchange SMEs Board over the period of 2009 to 2013. The methodologies employed in this study include ordinary lest square (OLS), fixed effects (FE) model, random effects (RE) model, and instrument variable techniques. The empirical results show that operating lease share increases with ownership, tax rate, and firm size; it decreases with debt ratio, tangibility, and dividend dummy. Non-manufacturing firms are more likely to lease (both operating lease and capital lease). Capital lease share increases with debt ratio and firm size. Firms with a higher financial distress tend to use more capital lease financing. The test results for total lease share are similar to those for operating lease share. Finally, the robustness checks by employing 2SLS-FE and 2SLS-RE show consistent results. 2016 Thesis https://eprints.ums.edu.my/id/eprint/38748/ https://eprints.ums.edu.my/id/eprint/38748/1/24%20PAGES.pdf text en public https://eprints.ums.edu.my/id/eprint/38748/2/FULLTEXT.pdf text en validuser masters Universiti Malaysia Sabah Fakulti Perniagaan, Ekonomi dan Perakaunan
institution	Universiti Malaysia Sabah
collection	UMS Institutional Repository
language	English English
topic	HF5601-5689 Accounting Bookkeeping
spellingShingle	HF5601-5689 Accounting Bookkeeping Li, Tongxia The determinants of leasing: Evidence from Chinese listed SMEs
description	Although lease has been developed into one of the most important financing instruments, particularly for small- and medium-size enterprises (SMEs), few studies examine the determinants of leasing in China. This study investigates the determinants of leasing for a sample of China-based non-financial firms listed on the Shenzhen Stock Exchange SMEs Board over the period of 2009 to 2013. The methodologies employed in this study include ordinary lest square (OLS), fixed effects (FE) model, random effects (RE) model, and instrument variable techniques. The empirical results show that operating lease share increases with ownership, tax rate, and firm size; it decreases with debt ratio, tangibility, and dividend dummy. Non-manufacturing firms are more likely to lease (both operating lease and capital lease). Capital lease share increases with debt ratio and firm size. Firms with a higher financial distress tend to use more capital lease financing. The test results for total lease share are similar to those for operating lease share. Finally, the robustness checks by employing 2SLS-FE and 2SLS-RE show consistent results.
format	Thesis
qualification_level	Master's degree
author	Li, Tongxia
author_facet	Li, Tongxia
author_sort	Li, Tongxia
title	The determinants of leasing: Evidence from Chinese listed SMEs
title_short	The determinants of leasing: Evidence from Chinese listed SMEs
title_full	The determinants of leasing: Evidence from Chinese listed SMEs
title_fullStr	The determinants of leasing: Evidence from Chinese listed SMEs
title_full_unstemmed	The determinants of leasing: Evidence from Chinese listed SMEs
title_sort	determinants of leasing: evidence from chinese listed smes
granting_institution	Universiti Malaysia Sabah
granting_department	Fakulti Perniagaan, Ekonomi dan Perakaunan
publishDate	2016
url	https://eprints.ums.edu.my/id/eprint/38748/1/24%20PAGES.pdf https://eprints.ums.edu.my/id/eprint/38748/2/FULLTEXT.pdf
_version_	1804890341445206016

The determinants of leasing: Evidence from Chinese listed SMEs

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