The novel mechanism of financing effect on companies development empirical study.

As China's economy continues to expand rapidly, the demand for capital among enterprises has surged, leading to an increased preference for short-term loans intended for long-term investments. An analysis of relevant data reveals that utilizing short-term financing for long-term projects positi...

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Main Authors: Siwei Tao, Xiuling Yuan
Format: Article
Language:English
Published: Public Library of Science (PLoS) 2025-01-01
Series:PLoS ONE
Online Access:https://doi.org/10.1371/journal.pone.0326934
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author Siwei Tao
Xiuling Yuan
author_facet Siwei Tao
Xiuling Yuan
author_sort Siwei Tao
collection DOAJ
description As China's economy continues to expand rapidly, the demand for capital among enterprises has surged, leading to an increased preference for short-term loans intended for long-term investments. An analysis of relevant data reveals that utilizing short-term financing for long-term projects positively influences the leverage of non-financial listed companies. Notably, private enterprises experience greater benefits compared to their state-owned counterparts. While short-term loans effectively enhance short-term leverage, their impact on long-term leverage appears to be minimal. Consequently, it is advisable for businesses to select financing strategies that align with their specific circumstances and to enhance their financial management practices to create new funding avenues. Additionally, there is a call for the government to bolster support for private enterprises. These findings hold significant implications for guiding financial decision-making and management in enterprises.
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spelling doaj-art-a574e3cfc71a416592512cbf5fbf9b8e2025-08-20T03:13:49ZengPublic Library of Science (PLoS)PLoS ONE1932-62032025-01-01207e032693410.1371/journal.pone.0326934The novel mechanism of financing effect on companies development empirical study.Siwei TaoXiuling YuanAs China's economy continues to expand rapidly, the demand for capital among enterprises has surged, leading to an increased preference for short-term loans intended for long-term investments. An analysis of relevant data reveals that utilizing short-term financing for long-term projects positively influences the leverage of non-financial listed companies. Notably, private enterprises experience greater benefits compared to their state-owned counterparts. While short-term loans effectively enhance short-term leverage, their impact on long-term leverage appears to be minimal. Consequently, it is advisable for businesses to select financing strategies that align with their specific circumstances and to enhance their financial management practices to create new funding avenues. Additionally, there is a call for the government to bolster support for private enterprises. These findings hold significant implications for guiding financial decision-making and management in enterprises.https://doi.org/10.1371/journal.pone.0326934
spellingShingle Siwei Tao
Xiuling Yuan
The novel mechanism of financing effect on companies development empirical study.
PLoS ONE
title The novel mechanism of financing effect on companies development empirical study.
title_full The novel mechanism of financing effect on companies development empirical study.
title_fullStr The novel mechanism of financing effect on companies development empirical study.
title_full_unstemmed The novel mechanism of financing effect on companies development empirical study.
title_short The novel mechanism of financing effect on companies development empirical study.
title_sort novel mechanism of financing effect on companies development empirical study
url https://doi.org/10.1371/journal.pone.0326934
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