Abstract
Recent literature starts to focus on the effects of the urgency of cash demand on the choice of financing sources. Extant studies use data from the U.S. and conclude that firms use debt financing to meet immediate cash demand and equity financing to meet longer-term cash demand. Using data from China, this paper uncovers opposite findings: Firms are more likely to use equity financing to meet immediate cash demand and debt financing to meet cash demand in longer terms. We discuss the possible mechanisms behind the pattern.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
