Does Debt Serve as Resistance against Governmental Interference? --Evidences from Chinese Local State-own Enterprises
We examines the relationship between municipal governmental interference and corporate leverages ratios based on Chinese local State-owned Enterprises (local SOEs).Our study finds that municipal governmental interference is positively associated with local SOEs leverage ratios.Such relationship is more noteworthy in the provinces with higher levels of governmental interference.These local SOEs leverage ratios are negatively associated with actual tax rates, which is more noteworthy for more profitable firms.These results reveal that in China, municipal government serves as a significant party to have influence on local SOEs decisions.However, local SOEs can raise leverage ratio in order to escalate their bargaining power with the government and resist loss from governmental interference.
Governmental interference Leverage ratio Local State-owned Enterprise (SOE)
WANG Dehong
International Business School, Beijing Foreign Studies University, Beijing, China, 100089
国际会议
日本
英文
80-87
2017-07-01（万方平台首次上网日期，不代表论文的发表时间）