Author(s)

Han Ruyue ¹, Yang Qi ¹

Affiliation(s)

¹ School of Economics and Management, North China University of Technology, Beijing, China

Corresponding Author

Han Ruyue

ABSTRACT

In recent years, the number of local government financing vehicles in China has been increasing, the scale of development has been expanding rapidly, and the financing methods used have also been increasing. At present, bank loans are still the main financing channels, but the financing lease mode has become one of the important ways for local government financing vehicles to obtain financial access. This paper mainly studies the lease-debt relationship of Chinese local government financing vehicles, and selects the unbalanced panel data of 1435 Chinese local government financing vehicles from 2012 to 2020 for empirical analysis. The empirical results show that the relationship between the lease ratio and the loan ratio is significantly negative, indicating that the lease-debt relationship of the local government financing platform in China is a substitution relationship. Increasing the use of lease financing will reduce the use of loan financing by the local government financing platform, while the control variable bond ratio, total assets, leverage ratio and cash ratio also have a significant impact on the lease ratio, Finally, based on the empirical results, this paper analyzes and puts forward corresponding suggestions.

KEYWORDS

China's local government financing vehicles, financial leasing, bank loans, random effect model

CITE THIS PAPER

Han Ruyue, Yang Qi, The Lease-debt Relationship of Chinese Local Government Financing Vehicles. Information Systems and Economics (2023) Vol. 4: 31-35. DOI: http://dx.doi.org/10.23977/infse.2023.040105.

REFERENCES

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[2] Liu Juan. Innovation of local government financing platform financing methods [J]. Tax, 2018, 12 (33): 203+206.
[3] Zhao Na, Wang Bo, Zhang Keyu. Financial leasing, bank credit and enterprise investment [J]. Financial Research, 2021, No. 487 (01): 150-168.
[4] Yang Ting, Shi Yanping. Does financial infrastructure help improve the debt governance effect of financial leasing——Based on the empirical test before and after the implementation of Zhongdeng.com [J]. Financial Development Research, 2022, (06): 13-21.
[5] Lin Youlin. Local government financing platform debt and countermeasures in the context of tighter regulation [J]. China Industrial and Commercial Economics, 2022, No. 282 (02): 84-86.

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