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Zhang, X. and Chen, X. (2013) The Determinants of the Phenomenon of Zero-Leverage Firms in the Listed Real Estate Industry. The Theory and Practice of Finance and Economics, 3, 78-81.

has been cited by the following article:

• TITLE: Manager Characteristics and the Choice of Firm “Low Leverage”: Evidence from China

  AUTHORS: Yiping Chen, Xindong Zhang, Zhe Liu

  KEYWORDS: Capital Structure, Low-Leverage Puzzle, Manager, Risk-Aversion, Gender

  JOURNAL NAME: American Journal of Industrial and Business Management, Vol.4 No.10, October 21, 2014

  ABSTRACT: In this paper, we analyze the low-leverage phenomenon of firms and examine the question of why some firms have low leverage in China. We find Low-leverage firms are smaller, have higher profitability and hold more cash balances than control firms chosen by industry and size. Our evidence supports the hypothesis that these firms are operated by risk-aversion manager. Firms with older Chief Executive Officer (CEO) and higher first shareholder ownership are more likely to have low debt. Also, CEO gender is one of the determinants of low-leverage choice.