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Analysis of the Motivation of Financing Leasing of Listed Companies an Empirical Study Based on Guangdong Province, China

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DOI: 10.23977/ferm.2023.060907 | Downloads: 55 | Views: 382

Author(s)

Qishu Wang 1,2, Zhaoyu Yang 2

Affiliation(s)

1 School of Economics, Jinan University, Guangzhou, Guangdong, China
2 School of Economics and Management, North China University of Technology, Beijing, China

Corresponding Author

Qishu Wang

ABSTRACT

Financial leasing has been favoured by many listed companies relying on its flexibility, low risk and tax advantages. This paper analyses the motivation of finance leasing of listed companies by collecting the financial report data disclosed by listed companies in Guangdong Province, China, from 2007 to 2019, information from CSMAR database and government planning documents, and selecting indicators in combination with existing research theories, and finally analysing the motivation of finance leasing of listed companies by using Logistic regression and Probit regression. It is found that the debt substitution effect of finance leasing is significant, i.e. there is mutual substitution between finance leasing and borrowing financing. At the same time, we also note that listed companies take finance leasing more for the purpose of short-term capital financing and improving the asset growth rate.

KEYWORDS

Guangdong, Financial lease, Influencing factors, Lessee

CITE THIS PAPER

Qishu Wang, Zhaoyu Yang, Analysis of the Motivation of Financing Leasing of Listed Companies an Empirical Study Based on Guangdong Province, China. Financial Engineering and Risk Management (2023) Vol. 6: 46-50. DOI: http://dx.doi.org/10.23977/ferm.2023.060907.

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