New Evidence of Lease-Debt Relationship from China's Interest Rate Liberalization Reform -Estimation Based on Difference-in-Differences Model

Ting Yang, Yanping Shi, Ruohong Liu

2022

Abstract

This paper examines the relationship of leases and debt in China using the interest rate liberalization reform as an exogenous shock. The Difference-in-Differences results show that leases and debt are substitutes in China. Specifically, compared with large-sized firms, small-sized firms increase more loans, especially long-term loans, and decrease more leases after the lending-rate-floor reform. Moreover, the substitution relationship of leases and debt applies to state-owned-enterprises instead of private enterprises. This paper provides new evidence about the lease-debt relationship in emerging markets.

Paper Citation

in Harvard Style

Yang T., Shi Y. and Liu R. (2022). New Evidence of Lease-Debt Relationship from China's Interest Rate Liberalization Reform -Estimation Based on Difference-in-Differences Model. In Proceedings of the 1st International Conference on Public Management, Digital Economy and Internet Technology - Volume 1: ICPDI; ISBN 978-989-758-620-0, SciTePress, pages 522-525. DOI: 10.5220/0011751200003607

in Bibtex Style

@conference{icpdi22,
author={Ting Yang and Yanping Shi and Ruohong Liu},
title={New Evidence of Lease-Debt Relationship from China's Interest Rate Liberalization Reform -Estimation Based on Difference-in-Differences Model},
booktitle={Proceedings of the 1st International Conference on Public Management, Digital Economy and Internet Technology - Volume 1: ICPDI},
year={2022},
pages={522-525},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0011751200003607},
isbn={978-989-758-620-0},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 1st International Conference on Public Management, Digital Economy and Internet Technology - Volume 1: ICPDI
TI - New Evidence of Lease-Debt Relationship from China's Interest Rate Liberalization Reform -Estimation Based on Difference-in-Differences Model
SN - 978-989-758-620-0
AU - Yang T.
AU - Shi Y.
AU - Liu R.
PY - 2022
SP - 522
EP - 525
DO - 10.5220/0011751200003607
PB - SciTePress