Import Liberalization and the Choice of Corporate Capital Structure
A simple theoretical model demonstrates that import liberalization may induce firms to switch to long-term bond financing.Evidence from Chinese manufacturing firms supports model predic-tions,and shows that tariff reductions are associated with falling short-term leverage ratios but rising long-term leverage ratios.In particular,small-scale companies tend to reduce short-term leverage.Addi-tionally,financing constraints may also limit the ability of firms'capital structure adjustment.The paper suggests that actively expanding imports,opening up domestic markets,and promoting the development of direct-financing capital markets,especially the long-term corporate debt markets,will contribute to the implementation of China's"structural deleveraging"policy.
import liberalizationcapital term structurestructural deleveraging
万方数据
维普
