测试啄食理论【外文翻译】.doc

1、本科毕业论文外文翻译外文题目TESTINGTHEPECKINGORDERTHEORY出处THECHINESEECONOMYVOL作者倪金兰和俞苗苗原文TESTINGTHEPECKINGORDERTHEORYABSTRACTTHEPECKINGORDERTHEORYOFCAPITALSTRUCTURE,WHICHPREDICTSTHATFIRMSPREFERINTERNALTOEXTERNALFINANCE,ISONEOFTHEMOSTINFLUENTIALTHEORIESOFCORPORATELEVERAGETHISARTICLEEXAMINESWHETHERTHEFINANCIALSTRUC

2、TUREOFCHINASLISTEDCOMPANIESFOLLOWSAPECKINGORDERFROMDEBTTOEQUITYUSINGTHEENTIRECROSSSECTIONSAMPLEOFCHINASLISTEDCOMPANIESIN2004,THEAUTHORSFINDNOEVIDENCETHATCHINASLISTEDCOMPANIESFOLLOWAPECKINGORDERWHENTHEYNEEDFUNDSTOFINANCEINVESTMENTPROJECTSFURTHERSUBGROUPANALYSESINDICATETHATBIGCOMPANIESFOLLOWAPECKINGOR

3、DERANDSMALLANDMEDIUMCOMPANIESDONOTTHESERESULTSSUGGESTTHATTHECHINESECAPITALMARKETISSTILLUNDERDEVELOPMENTHOWEVER,THELARGECOMPANIESFACEARELATIVELYLOOSERFINANCINGENVIRONMENTTHANTHESMALLONESHOWSHOULDFIRMSFINANCETHEIRINVESTMENTPROJECTSTWOCOMPETINGTHEORIESOFFERTHEOPTIMALCAPITALSTRUCTUREFORTHISFINANCINGDECI

4、SIONTHETRADITIONALSTATICTRADEOFFTHEORYANDTHEPECKINGORDERTHEORYTHEFORMERSUGGESTSTHATAVALUEMAXIMIZINGFIRMWILLPURSUEANOPTIMALDEBTTOVALUERATIOBYATRADEOFFOFTHECOSTOFFINANCIALDISTRESSMARSH1982ANDTAGGART1977PROVIDEDEVIDENCETHATFIRMSADJUSTTOWARDATARGETDEBTTOVALUERATIOHOWEVER,MYERS1984ARGUEDTHATTHEPOORFITNES

5、SOFTHEECONOMETRICMODELANDDRAMATICALLYDIFFERENTACTUALDEBTRATIOSACROSSSIMILARFIRMSMAKETHESTATICTRADEOFFTHEORYPLAUSIBLEMYERSANDMAJLUF1984PROPOSEDTHESECONDFRAMEWORK,THEPECKINGORDERTHEORYBASEDONASYMMETRICINFORMATIONMANAGERSHAVEMOREINSIDEINFORMATIONTHANINVESTORSANDACTINFAVOROFOLDSHAREHOLDERSTHEIRTHEORYSUG

6、GESTSTHATTHEREISNOOPTIMALRATIO,ANDFIRMSPREFERDEBTTOEQUITYIFEXTERNALFINANCINGISREQUIREDSHYAMSUNDERANDMYERS1999FURTHERDEVELOPEDANEMPIRICALMODELTHATFINANCIALDEFICITSHOULDHAVEADOLLARFORDOLLARIMPACTONFIRMLEVERAGEIFTHEPECKINGORDERISFOLLOWEDTHATIS,AONEDOLLARINCREASEINFINANCIALDEFICITLEADSTOAONEDOLLARINCREA

7、SEINAFIRMSLEVERAGEUSING157FIRMSFROMCOMPUSTATDATATHATSTARTEDATYEAR1981ANDSURVIVEDTHROUGH198189,THEYFOUNDSTRONGEVIDENCETOSUPPORTTHEPECKINGORDERPREDICTIONSTHEPURPOSEOFTHISARTICLEISTOEXAMINEWHETHERCHINESELISTEDCOMPANIESFOLLOWTHEABOVEPECKINGORDERTHEORYINTHEIRFINANCINGDECISIONSUSINGAUNIQUESAMPLEOF407LISTE

8、DCHINESECOMPANIESATTHESHANGHAISTOCKEXCHANGECENTERINYEAR2004,WEFINDNOEVIDENCETHATCHINESECOMPANIESFOLLOWTHEPECKINGORDERTHEORYWEFURTHEREXAMINETHEPECKINGORDERTHEORYINTHENARROWSETSOFFIRMSFIRST,WEFOCUSONFIRMSWITHAMODERATEDEBTRATIO,SINCEMYERS1984SUGGESTEDTHATTHEMODIFIEDPECKINGORDERTHEORYISMORESUITABLEFORCO

9、MPANIESWITHAMODERATEDEBTRATIOTHERESULTSINDICATETHATTHEMODERATEDEBTRATIOCOMPANIESDONOTFOLLOWAPECKINGORDER,EITHERSECOND,WEBREAKOURSAMPLEBYFIRMSIZELARGE,MEDIUM,ANDSMALLSINCESMALLFIRMSAREEXPECTEDTOFOLLOWTHEPECKINGORDERTHEORYDUETOLARGEINFORMATIONASYMMETRYCONTRARYTOTHETHEORY,OUREVIDENCESHOWSTHATONLYTHELAR

10、GECOMPANIESFOLLOWAPECKINGORDERIFTHEPECKINGORDERTHEORYISCORRECT,THENTHEFACTTHATTHESMALLANDMEDIUMFIRMSDONOTFOLLOWAPECKINGORDERREFLECTSTHEINEFFICIENTCAPITALMARKETINCHINATHISISNOTSURPRISING,SINCETHECHINESEECONOMYISATAUNIQUESTAGEOFBOTHADEVELOPINGANDTRANSITIONECONOMYHOWEVER,THELARGECOMPANIESINCHINASEEMTOH

11、AVEALOOSERFINANCINGENVIRONMENTTHEABOVERESULTSARECONSISTENTWITHTHOSEINFRANKANDGOYAL2003USINGABROADCROSSSECTIONOFPUBLICLYTRADEDAMERICANFIRMSOVERTHEPERIOD197198,FRANKANDGOYAL2003SHOWEDTHATFINANCIALDEFICITISANIMPORTANTFACTOROFCORPORATELEVERAGE,BUTTHEREISNOEVIDENCETOSUPPORTTHEPECKINGORDERSIMILARLY,THEYDI

12、DFINDTHATTHEFINANCINGBEHAVIOROFTHELARGESTQUARTILEFIRMSINEARLIERYEARSFOLLOWSTHEPECKINGORDERWHENNARROWERSAMPLESOFFIRMSWERECONSIDEREDHOWEVER,THISSUPPORTFORTHEPECKINGORDERTHEORYDECLINESOVERTIMETHEYARGUEDTHATSHYAMSUNDERANDMYERS1999HADASURVIVINGBIASTHATLEDTHEIRSMALLSAMPLETOWARDLARGERFIRMSANDTHUSAFFECTEDTH

13、EIRCONCLUSIONHOWEVER,CHENANDZHAO2004ARGUEDTHATFRANKANDGOYALSRESULTSWEREDRIVENBYTHEIRLARGEDEBTREDUCTIONFIRMSAFTERSTUDYINGTHEFINANCIALDECISIONSOFFIRMSWITHDIFFERENTBANKRUPTCYRISKS,THEYFOUNDACLEARPREFERENCEOFDEBTOVEREQUITYTHEYFURTHERFOUNDTHATTHEPECKINGORDERFROMDEBTTOEQUITYSTRENGTHENSFROMLOWTOMEDIUMBANKR

14、UPTCYRISKFIRMSSIMILARLY,ZOPPAANDMCMAHON2001EXAMINEDAPANELOF871MANUFACTURINGSMALLANDMEDIUMENTERPRISESSMESFROMTHEAUSTRALIANSURVEYDATAFORTHREEFINANCIALYEARS199596TO199798ANDPROVIDEDSUBSTANTIALEMPIRICALEVIDENCESUPPORTINGPECKINGORDERFINANCINGBEHAVIORAMONGSMESTWOARTICLESHAVEEXAMINEDTHECAPITALSTRUCTUREOFCH

15、INESELISTEDCOMPANIESINTHELITERATUREUSINGAPANELSAMPLEOF1,200CHINESELISTEDCOMPANIESFROM1994TO2003,HUANGANDSONG2006INVESTIGATEDTHEDETERMINANTSOFTHELEVERAGEOFCHINESELISTEDCOMPANIESTHEYCONJECTUREDTHATTHESTATICTRADEOFFMODELEXPLAINSTHECAPITALSTRUCTUREOFCHINESELISTEDCOMPANIESBETTERTHANTHEPECKINGORDERHYPOTHE

16、SIS2CONVERSELY,USINGFORTYSEVENLISTEDCHINESECOMPANIES,TONGANDGREEN2005FOUNDTHATCHINESECOMPANIESDOFOLLOWAPECKINGORDERINCONTRASTTOTHEABOVEMODELS,WEEXPLAINTHEDIFFERENCEOFOURRESULTSINTHATWEUSETHEPECKINGORDERMODELORIGINALLYFROMSHYAMSUNDERANDMYERS1999ANDTHEYUSEDTHELEVERAGEMODELTHATINDICATESTHEDETERMINANTOF

17、LEVERAGETOSHOWTHIS,WEREPEATTHEIRANALYSISANDFINDSIMILARRESULTSTHATTHELEVERAGEISDETERMINEDBYGROWTHRATE,COMPANYSIZE,PROFITABILITY,ANDDIVIDENDHOWEVER,THISDOESNOTINDICATETHATTHEINCREASEOFFUNDDEFICITHASTHESAMEPROPORTIONOFINCREASEINLIABILITY,WHICHISWHATTHEPECKINGORDERMODELWANTSTOINVESTIGATEOURARTICLEFILLST

18、HISGAPBACKGROUNDOFCHINESECAPITALMARKETCHINAHASALARGECAPITALSUPPLYASARESULTOFECONOMICREFORMANDDEVELOPMENTOVERMORETHANTWENTYYEARSFIGURE1SHOWSTHATTHENATIONALSAVINGSAMOUNTINCREASEDFROMRMB92BILLIONIN1991TORMB1196BILLIONIN2004CHINESEHOUSEHOLDSUSEDTOSAVEFORPROMPTDEMANDANDSTILLHAVETO,DUETOTHEUNDERDEVELOPEDS

19、OCIALSECURITYSYSTEM,INCREASINGHEALTHCAREEXPENDITURES,INCREASINGEDUCATIONEXPENDITURE,ANDCOSTLYREALASSETSTHERESULTINGHIGHSAVINGSIMPLYABUNDANTEXTERNALFUNDINGRESOURCESFORCHINESELISTEDCOMPANIESTHISISREALIZEDTHROUGHTHREEMAINFINANCINGCHANNELSTHEBANKINGSYSTEM,THESTOCKMARKET,ANDTHECORPORATEBONDMARKETCHINESEB

20、ANKINGSECTORSHAVEBEENANDCONTINUETOBETHEPRIMARYSOURCEOFCOMPANIESLONGTERMDEBTINCHINABEKIER,HUANG,ANDWILSON2005THEREAREFOURLARGE,STATEOWNEDCOMMERCIALBANKS,WHICHPLAYTHEMAJORROLESINTHEBANKINGSECTORASHODGSON2004POINTEDOUT,THEYHOLDABOUT75PERCENTOFTOTALBANKASSETSHOWEVER,THEREAREMANYPROBLEMSWITHTHEBANKINGSYS

21、TEMFIRST,INTERESTRATESARESTILLUNDERTHECONTROLOFTHECHINESECENTRALGOVERNMENTDUETOTHEPASTPLANNEDECONOMYSECOND,THEBANKSESTABLISHEDANABNORMALLYCLOSERELATIONSHIPWITHCOMPANIESBASEDONNONPROFITREASONSCALLEDGUANXITHIRD,THEEXISTINGHUGEAMOUNTOFBADLOANSANDLOWERPROFITABILITYINDICATETHEIRINEFFICIENTRISKMANAGEMENTT

22、HISLARGELYLIMITSNEWCOMPANIESFINANCINGCHANNELSFINALLY,BANKSAREMUCHMORECAUTIOUSTHANEVERINDEBTLOANTHEYACCEPTMORESHORTTERMDEBTANDMORTGAGELOANSIN2004,THESHORTTERMLOANSOFFINANCIALINSTITUTIONSWERERMB87TRILLION,WHEREASTHEMEDIUMTERMANDLONGTERMLOANSWERERMB77TRILLIONTHEALTERNATIVEFUNDINGSOURCESARETHECAPITALMAR

23、KETSTHATWEREESTABLISHEDANDRAPIDLYDEVELOPEDOVERASINGLEDECADEIN1990,THEFIRSTSTOCKEXCHANGECENTER,THESHANGHAISTOCKEXCHANGE,WASESTABLISHEDINMETROPOLITANSHANGHAI,ANDTHESHENZHENSTOCKEXCHANGEWASESTABLISHEDINSHENZHENTHEFOLLOWINGYEARAFTERMORETHANTENYEARSOFDEVELOPMENT,THENUMBEROFLISTEDCOMPANIESIN2004REACHED1,3

24、77,5WHILETHECAPITALRAISEDBYSTOCKISABOUTRMB15BILLIONISSUEDSHAREISSUINGPRICEINORDERTOMEETTHEDEMANDOFFOREIGNCURRENCIESFORDOMESTICCOMPANIES,THEGOVERNMENTCREATEDABSHAREMARKETIN1992THEPARTICIPANTSINBSHARESWERELIMITEDTOFOREIGNINVESTORSBEFORE2002AFTERTHAT,THEBSHAREMARKETWASOPENEDTOINDIVIDUALDOMESTICCITIZENS

25、CHIU,LEE,ANDCHEN2005IN2004,THEREWEREEIGHTYSIXCOMPANIESISSUINGBOTHAANDBSHARES,ANDTWENTYFOURCOMPANIESISSUINGONLYBSHARESFIGURE2SHOWSTHETRENDOFFUNDSRAISEDBYCORPORATEBONDSANDSHARESFROM1991TO2004THESHARESINCLUDEASHARES,RIGHTSISSUED,HANDNSHARES,ANDBSHARESCOMPAREDWITHTHECORPORATEBONDMARKET,THESTOCKMARKETDEV

26、ELOPEDRAPIDLYASWECANSEEFROMFIGURE2,THEVALUEOFSHARESISSUEDDRAMATICALLYINCREASEDFROMRMB5MILLIONIN1991TORMB15BILLIONIN2004THECHINESEGOVERNMENTWASINCREASINGTHEMARKETMECHANISMANDRELAXINGTHEREGULATIONSGRADUALLYFORTHETWOSTOCKEXCHANGESFOREXAMPLE,ADMINISTRATIVEMEASURESFORSECURITIESISSUANCEOFLISTEDCOMPANIESAM

27、SILCWEREISSUEDBYTHECHINASECURITIESREGULATORYCOMMISSIONCSRCIN2006AMSILCSTATESTHATONEOFTHEROLESOFTHECSRCISTOACTASTHETHIRDPARTYINSUPERVISIONOREVENDIRECTLYINTERFEREINSECURITIESTRADINGINCONTRAST,THERELATIVELYFLATCURVEOFCORPORATEBONDSINDICATESTHATTHECHINESEBONDMARKETISDEVELOPINGSLOWLYITISTRUETHATTHEREAREM

28、ANYSTIMULITOBONDMARKETREFORMFOREXAMPLE,INVESTMENTDEMANDFROMINSURANCECOMPANIESANDFOREIGNINVESTORSHOWEVER,QUALIFICATIONSFORFIRMSTOISSUEBONDSAREVERYSTRICTBECAUSEOFTHEABSENCEOFEFFICIENTCREDITRATINGSYSTEMSTHECOMPLICATEDAPPROVALPROCEDUREINDEBTFINANCING,QUOTACONTROL,ANDTHEREQUIREMENTOFCOLLATERALSIGNIFICANT

29、LYRESTRICTSTHEDEVELOPMENTOFTHECORPORATEBONDMARKETFURTHERMORE,CHINESECOMPANIESOPAQUEFINANCIALRECORDSDETERPOTENTIALBONDINVESTORSANDIMPEDETHEEXPANSIONOFTHEBONDMARKETCHENANDTHOMAS2005INSUM,THEFINANCINGCHANNELSINCHINACONSISTOFTHEWEAKBANKINGSYSTEM,THEUNDEVELOPEDCORPORATEBONDMARKET,ANDRAPIDLYDEVELOPEDSTOCK

30、MARKETOURARTICLESEEKSTOEXPLORETHEFINANCINGSTRUCTUREOFCHINESELISTEDCOMPANIESUNDERTHECURRENTCAPITALMARKETDATAANDMETHODOLOGYTHEDATASETINTHISARTICLEWASMANUALLYCOLLECTEDFROM2004UNCONSOLIDATEDANNUALFINANCIALREPORTSOF422COMPANIESTHATWERERANDOMLYSELECTEDFROMCOMPANIESCURRENTLYLISTEDONTHESHANGHAISTOCKEXCHANGE

31、OFTHE422FIRMS,SIXFINANCIALCOMPANIESWEREEXCLUDEDANDFOURCOMPANIESDIDNOTHAVEENOUGHINFORMATIONFORTHESTUDYFURTHERMORE,WEDROPPEDFIVEOUTLIERSWITHNEGATIVEOWNERSHIPEQUITIESTHISLEFT407LISTEDCOMPANIESFORTHEEMPIRICALANALYSISOUREMPIRICALMODELISSIMILARTOTHATOFSHYAMSUNDERANDMYERS1999THATISDERIVEDFROMTHEPECKINGORDE

32、RTHEORYINMYERS1984ANDMYERSANDMAJLUF1984ASSUMINGTHATFIRMSCANFINANCETHEIRPROJECTSBYRETAINEDEARNINGS,DEBT,ANDEQUITY,THEPECKINGORDERTHEORYPREDICTSTHATFIRMSWILLFUNDTHEIRPROJECTSUSINGRETAINEDEARNINGSFIRST,THENUSEDEBTIFRETAINEDEARNINGSAREINADEQUATE,ANDTURNTOEQUITYFINANCINGIFTHEYHAVETOWHENNOMOREDEBTISAVAILA

33、BLEANDCOSTSOFFINANCIALDISTRESSAREHIGHACCORDINGTOTHETHEORY,THEPECKINGORDERHYPOTHESISISTOTESTREGRESSIONRESULTSFIRST,WECONDUCTORDINARYLEASTSQUARESOLSREGRESSIONONOUR407CROSSSECTIONALOBSERVATIONSUSINGTHEPECKINGORDERMODEL1WETHENDISCUSSOURMODELBYREPEATINGTHELEVERAGEMODELUSEDBYHUANGANDSONG2006ANDTONGANDGREE

34、N2005INSODOING,WEFINDOURCONCLUSIONTHATCHINESELISTEDCOMPANIESDONOTFOLLOWTHEPECKINGORDERTHEORYPECKINGORDERMODELREGRESSIONWEFIRSTCONDUCTTHEREGRESSIONOFMODELTOTHEENTIRESAMPLETHEN,WEBREAKTHESAMPLEBYDEBTRATIOSSINCETHEMODIFIEDPECKINGORDERTHEORYOFMYERS1984SUGGESTSTHATTHEFIRMSWITHMODERATELEVERAGEWILLBESTFOLL

35、OWTHEPECKINGORDERFINALLY,WEBREAKTHEWHOLESAMPLEBYCOMPANYSIZEASFRANKANDGOYAL2003SUGGESTED,SMALLFIRMSCONFRONTINGRELATIVELYWORSEADVERSESELECTIONPROBLEMSSHOULDBEMORELIKELYTOMATCHTHEPECKINGORDERPREDICTIONSWEFINDNOEVIDENCETHATCHINESECOMPANIESFOLLOWTHEPECKINGORDERFROMOURREGRESSIONTOTHEENTIRESAMPLEASWECANSEE

36、ATCOLUMN1INTABLE2,THEINCREASEINFUNDFLOWOFDEFICITSSIGNIFICANTLYINCREASESCOMPANYNEWDEBTHOWEVER,THECOEFFICIENTOFDEFIISRATHERLOW0152WEFURTHERTESTTHEJOINTHYPOTHESISOFTHEPECKINGORDERTHAT0AND1ANDTHERESULTSOFTHEFTESTINDICATETHATTHEPECKINGORDERHYPOTHESISISSTRONGLYREJECTEDTHEREFORE,CHINESELISTEDCOMPANIESAREPR

37、ONETOEQUITYISSUEWHENEXTERNALFUNDSAREREQUIREDTHISCOMPLEMENTSTHEFINDINGSOFHUANGANDSONG2006THATFORCHINESELISTEDCOMPANIESTOBINSQTHERATIOOFTHEMARKETVALUEOFAFIRMSASSETS,AMEASUREMENTOFAFIRMSPERFORMANCE,ISEXTREMELYHIGHTHISIMPLIESTHATTHESTOCKVALUESAREEXCESSIVELYOVERESTIMATEDINCHINAACCORDINGTOMARKETTIMINGTHEO

38、RY,FIRMSTENDTOISSUEMOREEQUITYWHENTHEIRSTOCKSAREOVERESTIMATEDHUANGANDFUNG2005ARGUEDTHATACHARACTERISTICDISTINCTIONBETWEENCHINASSTOCKMARKETANDTHATOFOTHERDEVELOPEDCOUNTRIESISTHAT,INCHINA,THEREARENONFLOATABLESHARESTHATAREHELDBYCORPORATECONTROLLERSANDCANNOTBETRADEDONEITHERTHESHANGHAISTOCKEXCHANGEORTHESHEN

39、ZHENSTOCKEXCHANGETHEVALUEOFTHENONFLOATABLESHARESISPOSITIVELYCORRELATEDWITHTHEMARKETVALUESOFAFIRMSEQUITY12INORDERTOINCREASETHEEXPECTEDVALUEOFNONFLOATABLESHARES,THEFIRMSCONTROLLERSTENDTOISSUETHEMAXIMUMAMOUNTOFEQUITYSECOND,OURRESULTSSHOWTHATFIRMSWITHMODERATEDEBTRATIODONOTFOLLOWAPECKINGORDEREITHERFOLLOW

40、INGFRANKANDGOYAL2003,THEMODERATEDEBTRATIOGROUPEXCLUDESTHECOMPANIESWITHEITHERTHETOPTWODECILESORTHEBOTTOMTWODECILESOFDEBTRATIOASWECANSEEFROMCOLUMN2INTABLE2,THERESULTSFORMODERATELEVERAGECOMPANIESARESIMILARTOTHOSEOFTHEENTIRESAMPLETHEREFORE,THEREISNOEVIDENCETOSUPPORTAPECKINGORDERAMONGCHINESELISTEDCOMPANI

41、ES,EVENFORFIRMSWITHMODERATEDEBTRATIOFINALLY,WEDOFINDTHATLARGECHINESECOMPANIESFOLLOWAPECKINGORDERTABLE3PROVIDESTHEREGRESSIONRESULTSFORSMALL,MEDIUM,ANDLARGECOMPANIESTHECOEFFICIENTFORSMALLCOMPANIESISNOTSIGNIFICANT,WHILETHECOEFFICIENTFORLARGECOMPANIESISTHEHIGHEST0896ANDSIGNIFICANTATTHE1PERCENTLEVELTHISI

42、SCOMPARABLEWITHTHERESULTSINSHYAMSUNDERANDMYERS1999FOR157COMPANIESABOUT07ANDFRANKANDGOYAL2003FORLARGECOMPANIESABOUT07THEFTESTSOFOURJOINTHYPOTHESISINDICATETHATTHELARGECOMPANIESMATCHWELLWITHTHEPECKINGORDERPREDICTIONSTHERESULTSARECONSISTENTWITHFRANKANDGOYAL2003WHOFOUNDTHATONLYTHELARGECOMPANIESFOLLOWTHEP

43、ECKINGORDERWHEREASTHEENTIRESAMPLEINCLUDINGTHESMALLONESDOESNOTTHIS,HOWEVER,CONTRADICTSTHEPECKINGORDERTHEORYTHATSMALLFIRMSWILLFOLLOWTHEBESTBECAUSESMALLFIRMSCONFRONTMORESERIOUSASYMMETRICINFORMATIONTHANTHELARGEONESWHY,INGENERAL,DOCHINESELISTEDCOMPANIESNOTFOLLOWTHEPECKINGORDER,WHEREASLARGECOMPANIESDOTHIS

44、MAYBEDUETOTHEINEFFICIENTCAPITALSTRUCTUREFORTHESPECIALSTAGEOFCHINASDEVELOPINGANDTRANSITIONECONOMYFIRST,ASWESHOWEDINTHESECONDSECTION,THEBONDMARKETISSLOWLYDEVELOPEDDUETOSTRICTQUALIFICATIONSFORFIRMSISSUINGBONDSTHISRESULTSINONLYAFEWEXCELLENTLARGEFIRMSBEINGAPPROVEDTOENTERTHECORPORATEBONDMARKETINPARTICULAR

45、,AFEWLARGESTATEOWNEDENTERPRISESTHELARGESTATEOWNEDCOMPANIESTHATAREPROTECTEDBYTHEGOVERNMENTNOTONLYHAVETHEADVANTAGEOFACCESSTOTHECORPORATEBONDMARKET,BUTCANALSOUSEGOVERNMENTCREDITTOOBTAINLOANSFROMCOMMERCIALBANKSOROTHERFINANCIALINSTITUTIONSSECOND,THEBIGFOURSTATEOWNEDCOMMERCIALBANKSSTILLPLAYSIGNIFICANTROLE

46、SINTHEBANKINGSECTOR,ASSHOWNABOVEHOWEVER,THEYDONOTOPERATEASEFFICIENTLYASTHEYSHOULDTHEEXISTINGHUGEAMOUNTSOFBADLOANSANDLOWERPROFITABILITYHAVEMADEBANKSMORECAUTIOUSTHANEVERLARGECOMPANIESWITHMOREFIXEDASSETSTHATCANBEUSEDASCOLLATERALFINDITEASIERTHANSMALLFIRMSTOACQUIREDEBTFROMBANKSOURCONCLUSIONCONTRADICTSTHA

47、TOFTONGANDGREEN2005,WHICHUSEDFORTYFOURCOMPANIESINCLAIMINGTHATCHINESECOMPANIESFOLLOWAPECKINGORDERTONGANDGREEN2005USEDALEVERAGEDETERMINANTMODELTHAT,INOURVIEW,DEVIATESFROMTHEORIGINALTESTINGMODELOFTHEPECKINGORDERTHELEVERAGEMODELCAPTURESTHEDETERMINANTSOFLEVERAGE,BUTNOTTHEDOLLARFORDOLLARRELATIONSHIPTHATIN

48、DICATESTHATADOLLARINCREASEINFUNDDEFICITINCREASESONEDOLLAROFDEBTRATIOTOSHOWTHIS,WEWILLBRIEFLYINTRODUCETHELEVERAGEMODELANDTESTTHEMODELTOCOMPAREITWITHTHEPECKINGORDERMODELCONCLUSIONSANDIMPLICATIONSWEEXAMINEWHETHERCHINESELISTEDCOMPANIESFINANCINGDECISIONSARECONSISTENTWITHTHEPECKINGORDERTHEORYUSINGASAMPLEO

49、F407COMPANIES,WEFINDNOEVIDENCETHATTHECAPITALSTRUCTUREOFCHINESECOMPANIESFOLLOWSAPECKINGORDERFROMRETAINEDEARNINGSANDDEBTTOEQUITYFURTHER,WEFINDTHATCOMPANIESWITHMODERATEDEBTRATIOSDONOTFOLLOWAPECKINGORDER,WHICHISAGAINSTTHEFINDINGOFMYERS1984THATCOMPANIESWITHMODERATEDEBTRATIOWILLBESTFOLLOWTHEPECKINGORDERFINALLY,CONTRARYTOTHEIMPLICATIONOFTHEPECKINGORDERTHEORYTHATSMALLCOMPANIESWILLBESTFOLLOWTHEPECKINGORDER,OURRESULTSINDICATETHEOPPOSITELARGECOMPANIESFOLLOWTHEPECKINGORDERWHILESMALLANDMEDIUMCOMPANIESDONOTTHESEFINDINGSAREGENERALLYNOTCONSISTENTWITHTHOSEOFPRIORSTUDIESINTHEDEVELOPEDMARKE