Research On Determinants Of Financial Leasing Propensity In Manufacturing Listed Companies

During the period of2006-2010, as a new financing pattern, financial leasing has beenenjoined the most rapid growth in China. To encourage the development of financial leasingindustry, Governments at various levels has issued a number of preferential policies. However,the most interesting factors in the lease-versus-buy decision have received surprisingly littleattention in the modern corporate finance literature.This paper attempt to discusscorporations’ incentives to lease fixed asset under the frame of questioning the motivation offinancial leasing. I have selected the data of A-shares’listed companies of manufacturingindustry in Shanghai and Shenzhen Stock Exchange in China as the research samples duringthe period of2006-2011. The results showed that the leasing propensity is stronger duringtighter period of monetary and when the bank loan ratio of listed corporations is higher. Alsoduring tighter period of monetary，accounting conservatism more strengthen, the leasingpropensity is more stronger.