ABSTRACT
This chapter investigates the determinants of capital structure in Chinese firms, and will contribute to our understanding of the corporate governance mechanism in China. Although there have been many studies of capital structure for developed and developing countries alike, this is the first such study for China. Furthermore, this study combines insights from various strands of finance theory, notably agency theory, signalling theory, and the theory of corporate control to establish a more comprehensive model of the determinants of capital structure.
