China Corporate Finance Leases An Empirical Study Of The Factors And Tax Policy

With the variety of financing method in the world, financial lease has increasingly embodied its vitality in the capital market. However, the development of the financial lease market is not smooth in our country. The absolute total amount of financial lease in our country has been dropping since 1990, and touched the bottom in 2000. In 2002, the rate of the market infiltration in America is 30% while that in China is nearly 0%. It, how to deeply develop financial lease in China, is an urgent task for us. From the viewpoint of lessee, the paper analyzes some factors that influence the development of financial lease and presents some measures of tax policies to develop financial lease in China through using accounting reports of listed companies of Shanghai Stock Exchange of 2002.The paper is divided into the following five parts.Chapter 1, introduction. The author explains concisely the background of the topic choice, the meanings of the paper and the methods and the clues applied in the paper, as well as gives a brief introduction to the structure of the paper.Chapter 2, the brief reviews on the foreign and domestic documents of financial lease. In this part, the definition and the basic theory of financial lease and the tax policies of foreign financial lease are concisely discussed. First, the theory of tax difference, the theory of debt substitutability, the theory of agency costs and the bankrupt costs as well as the documents reviewed, are made as the theory basis of the paper. Secondly, some inspirations have been drawn by reviewing the tax policies of financial lease of the West, from which the paper received some instructive proposes for Chinese financial lease.Chapter 3, the analyses of current situation of foreign and domestic financial lease. After concisely analyzing the current situation of foreign financial lease, the paper discusses the current situation and the characteristics of Chinese financial lease as well as the shortage of present tax policies. All those discussed in this part form the basis of an empirical analysis.Chapter 4, the empirical analysis of financial lease in Chinese enterprises. In this part, the data and methodology are presented. A number of proxy variables are also defined to test the hypotheses. By using univariate analysis, the empirical analysis of the factors such as tax policies, growth opportunities, debt capacity and enterprise's profitability of financial lease in our country is carried out. According to the data we have gotten, the paper educes a logistic equation, from which some conclusions are drawn.Chapter 5, some conclusions of the empirical analysis and their suggestions on the tax policies of financial lease. On the basis of the empirical analysis, the paper draws a conclusion that the theory of tax difference and the theory of debt substitutability are significantly correlated to the probability of using financial lease. The paper also draws a conclusion that the enterprises with higher debt finance are more probable to use financial lease. Then, the paper puts forward some suggestions on the special lawmaking and the adjusting of sales tax and income tax.