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On Peer Effect of Chinese Listed Firms’ Capital Structure
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TitleOn Peer Effect of Chinese Listed Firms’ Capital Structure  
AuthorJiang Yonghong,Mo Bin and Tian Cunzhi  
OrganizationJinan University;; 
Key WordsCapital Structure; Imitation Mechanism; Peer Effect; Leaders; Followers 
AbstractAfter considering the spillover effect and imitation mechanism in firms’ financing decision, we employ the method of two-stage least squares to examine the peer effect on the capital structure of Chinese listed firms,which is based on a sample of 1054 Chinese listed firms from 2008 to 2015. The results indicate that the capital structure of Chinese listed firms is significantly influenced by their peer firms, and the firm’s financing decision is more likely to imitate the leading firms in the same industry. Further, we find that the impact of peer effects on the capital structure tends to be weakened when increasing the scale of industries. Our study enriches the behavioral mechanism of financing decision-making of Chinese listed firms as well as strengthens empirical studies on the firms’ imitation mechanism and spillover effects. 
Serial NumberWP1192 
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