An Empirical Study on the Impact of Interest Rate Liberalization on the Capital Structure of Listed Companies
[an error occurred while processing this directive]
Abstract In this paper, a partial adjustment model is used to study the impact of interest rate liberalization on the capital structure of listed companies, from both the static and dynamic perspectives, on the basis of a sample of unbalanced panel data composed of relative financial information of 718 firms in Shanghai and Shenzhen stock. At the same time, it discusses respectively whether the enterprise scale, debt level and the nature of ownership affect the effectiveness of interest rate liberalization. It finds out that the interest rate liberalization has impact not only on the capital structure of listed companies, but also on the adjusting speed thereof. However, this affection is different for different companies. Firstly, from the static perspective, SMEs and inadequate liability enterprises are affected by the interest rate liberalization most significantly. And non-state-owned enterprises are not affected significantly. Secondly, from the dynamic perspective, the interest rate liberalization affected capital structure adjustment speed of SMEs, inadequate and non state-owned enterprises mostly significantly. This research provides new empirical evidence how our country’s financial sector reform affects corporate investment and financing behavior, which has enlightenments for a better understanding of the decision of the capital structure in reality.
FU Li-Fu. An Empirical Study on the Impact of Interest Rate Liberalization on the Capital Structure of Listed Companies. Economic Survey, 2014, 31(3): 0133.
2014, Vol. 31 
