Financial constraint and the choice between leasing and debt

Jane Raung Lin*, Chia Jane Wang, De Wei Chou, Fei Chun Chueh


研究成果: 雜誌貢獻期刊論文同行評審

22 引文 斯高帕斯(Scopus)


Earlier studies suggest that companies use debt and leases interchangeably as the alternative external financing choice. We provide evidence that firms are not indifferent between debt and leases and the lease versus debt decision depends on the extent to which firms are financially constrained. For the most constrained firms leasing (debt) is negatively (positively) related to internal funds and for the less constrained firms the results are just the opposite. Our findings support the hypothesis that constrained firms tend to choose leasing over debt financing. The results are robust to various estimation methods that control for endogeneity and panel dynamics.

頁(從 - 到)171-182
期刊International Review of Economics and Finance
出版狀態已發佈 - 2013 6月

ASJC Scopus subject areas

  • 金融
  • 經濟學與計量經濟學


深入研究「Financial constraint and the choice between leasing and debt」主題。共同形成了獨特的指紋。