The Effect Of Macroeconomic Factors To The Capital Structure Of Financial Leasing Companies

Lease finance has developed in China for nearly 40 years.However,its tortuous development path and low penetration rate made few domestic researches focus on it,while financial leasing companies which engaged in lease finance have developed rapidly in the past decade,attracting the increasing attention of scholars.This paper takes the capital structure of financial leasing companies as the research perspective to investigate whether and how China’s macro-economic factors affect the capital structure of financial leasing companies.The paper summarizes the basic theory of the lease finance and the development status of financial leasing companies in China,then uses the main financial leasing company’s annual data during 2007 to 2017 and panel data model,on the basis of controlling the internal characteristics variable,to analysis the macro-economic factors’ effects on their capital structure.The study finds that different financial leasing companies have heterogeneity,and the comparative analysis of the estimation through four models shows that the individual fixed effect model may have the best estimation effect.The conclusion shows that the capital structure of financial leasing companies is negatively correlated with monetary policy and inflation,while it is positively correlated with debt ratio of enterprise sector,but it’s not significantly correlated with macroeconomic growth and short-term loan interest rate.The research results of this paper show that the capital structure of financial leasing companies is negatively correlated with monetary policy and inflation,positively correlated with the debt ratio of the enterprise sector,but not significantly correlated with macroeconomic growth and short-term loan interest rate.Specifically,in the external macro factors affecting financial leasing company asset-liability ratio,the leverage of the corporate sector and financial leasing companies leverage was significantly positive correlation,indicating that with the improvement of non-financial sector of corporate leverage,will be an increase in financing lease business,made the financial leasing company into more funds to expand business,so the rate of assets and liabilities of financial leasing companies will follow,conform to the alternative theory of debt.Inflation will not only accelerate the impairment of leased assets,but also squeeze the business of financial leasing companies,so that financial leasing companies reduce liabilities to reduce financial costs.In addition,the loose monetary policy has a certain crowding out effect on the market demand of financial leasing.Different from the domestic common research,this paper divides financial leasing companies and lease finance companies for research,providing a new way to study lease finance and financial leasing companies.