Empirical Research into the Influence of Regional Economic Development on Financing Structure of Enterprises
Han Zhan-bing
Abstract
Han Zhan-bing
Abstract
Empirical research shows that the enterprises of China's east developed areas prefer endogenous financing mode,however,the enterprises of China's west undeveloped areas prefer exogenous financing.In China,in different economic development regions,the sufficiency of funds,the earnings and the ownership structure of their enterprises are different and are important factors influencing the financing structure of the enterprises,and furthermore,these factors make the enterprises in different regions with different economic development situations have different financing structure.Thus,the optimization of enterprise financing structure in different regions should use different strategies.
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Empirical research shows that the enterprises of China's east developed areas prefer endogenous financing mode,however,the enterprises of China's west undeveloped areas prefer exogenous financing.In China,in different economic development regions,the sufficiency of funds,the earnings and the ownership structure of their enterprises are different and are important factors influencing the financing structure of the enterprises,and furthermore,these factors make the enterprises in different regions with different economic development situations have different financing structure.Thus,the optimization of enterprise financing structure in different regions should use different strategies.
Key concepts: Business, China, Finance, Risk financing, Earnings, Internal financing, Empirical research, Financial structure