Analysis of the Effect of Credit Fluctuation on Capital Structure of Listed Companies

Kai WU, Wen YANG

Abstract


This paper studies the influence of credit fluctuations on capital structures from the credit supply side perspective. The results, based on an analysis of data from the Listed Companies in China's A share market from 2003-2015, show that there is a positive, significant correlation between credit fluctuations and the capital structure of listed companies. We also determined that the credit policies have affect the capital structure of listed companies. Further research shows that the differences in credit policy environment have different effects on the capital structure of listed companies. Under the stable credit policy environment, the influence of credit fluctuation on the capital structure of listed companies is positive and the coefficient of influence is larger. Under the tight or expanding monetary policy environment, the impact of credit fluctuation on the capital structure of listed companies is negative and the impact coefficient is smaller. Based on this, this paper puts forward the policy recommendations to optimize the capital structure of listed companies.

Keywords


Credit Fluctuation, Capital Structure, Credit Supply Side

Full Text:

PDF

References


Bernanke, B. S., & Blinder, A. S. (1988). Credit, money, and aggregate demand. American Economic Review, 78, 435-439.

Blundell, R., & Bond, S. (1998). Initial conditions and moment restrictions in dynamics panel data models. Journal of Economic, 87(1), 115-143

Faukender, M., & Petersen, M. A. (2006). Does the source of capital affect capital structure? Review of Financial Studies, 19, 45-79.

Gertler, M., & Gilchrist, S. (1994). Monetary policy, business cycles, and the behavior of small manufacturing firms. Quarterly Journal of Economics, 109, 309-340.

Holmstrom, B., & Tirole J. (1997) Financial intermediation, loanable funds, and the real sector. Quarterly Journal of Economics, 112, 663-691.

Huang, X. J., Wang, X. R., & Zou, H. F. (2010). Monetary policy, regional differences and credit financing: An empirical study from China’s listed companies. Technical Economic, 6, 102-106.

Leary, M. T. (2008). Bank loan supply, lender choice and corporate structure. Journal of Finance, 64, 1143-1185.

Liu, L. W., & Hao, L. (2010). The influence of monetary policy on credit under the new paradigm of monetary economics. Financial and Economic Studies, 4, 80-85.

Min, L., & Shen, Y. (2011). Dynamic adjustment of capital structure under macro impact: Analysis based on financing constraints. Chinese Industrial Economy, 5, 111-120

Su, D. W., & Zeng, H. J. (2009). Changes in macroeconomic factors and capital structure. Economic Research, 12, 52-65

Tang, G. Z., & Liu, L. (2005). The effect of interest rate control on capital structure of listed companies. China, Management World, 1, 50-58.

Tong, Y. (2004). Dynamic adjustment of capital structure and its influencing factors. The Study of Finance and Economics, 10, 96-104.

Voutsinas, K., & Werner, R. A. (2011). Credit supply and corporate capital structure: Evidence from Japan. International Review of Financial Analysis, 20, 320-334.

Zeng, H. J., & Su, D. W. (2010). Credit policy and company capital structure. World Economy, 8, 17-42.

Zhao, D. Q., Zhu, W. X., & Wang, Z, (2008). Macroeconomic regulation and control, capital structure adjustment of real estate listed companies. Financial Research, 10, 82-96.




DOI: http://dx.doi.org/10.3968/9992

Refbacks

  • There are currently no refbacks.


Copyright (c) 2017 Wu Kai, Wen Yang

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.


Share us to:   


Reminder

  • How to do online submission to another Journal?
  • If you have already registered in Journal A, then how can you submit another article to Journal B? It takes two steps to make it happen:

1. Register yourself in Journal B as an Author

  • Find the journal you want to submit to in CATEGORIES, click on “VIEW JOURNAL”, “Online Submissions”, “GO TO LOGIN” and “Edit My Profile”. Check “Author” on the “Edit Profile” page, then “Save”.

2. Submission

  • Go to “User Home”, and click on “Author” under the name of Journal B. You may start a New Submission by clicking on “CLICK HERE”.


We only use three mailboxes as follows to deal with issues about paper acceptance, payment and submission of electronic versions of our journals to databases: caooc@hotmail.com; ibm@cscanada.net; ibm@cscanada.org

 Articles published in International Business and Management are licensed under Creative Commons Attribution 4.0 (CC-BY).

 INTERNATIONAL BUSINESS AND MANAGEMENT Editorial office

Address: 9375 Rue de Roissy Brossard, Québec, J4X 3A1, Canada 
Telephone: 1-514-558 6138 
Website: Http://www.cscanada.net Http://www.cscanada.org 
E-mailcaooc@hotmail.com

Copyright © 2010 Canadian Research & Development Centre of Sciences and Cultures