Credit risk rating is shown to be a relevant determinant in order to estimate good corporate governance and to self-optimize capital structure. The conclusion is argued from a study on a selected (and justified) sample of (182) companies listed on the Shanghai Stock Exchange (SHSE) and the...

The burden of companies' debt may not had been a major cause of the 2007-2008 global recessions but the failure of the financial market alerts companies reliance on external source of financing. Focusing on the pattern of capital structure in emerging economies, this study takes a particular...

In this paper, we empirically examine the determinants of capital structure in China, using 1,006,395 firm-year observations spanning 1998-2007. Consistent with the general findings in developed markets, we find that the long-term debt ratio is positively related to firm size and asset...