An Analysis of the Factors Affecting Debt Financing Structure--Empirical Evidence from Chinese Listed Companies

Abstract

This paper explores the factors affecting the Chinese listed companies debt financing and examines them using the data of Chinese listed companies. The evidence suggests that company size, the company's growth opportunities, the fixed asset ratio and free cash flow have a significant impact both on the company's maturity structure of debt financing and the type and source of it. It provides the basis for corporate to arrange the debt covenants and select financing structure reasonably.