Leasing and business cycles

Na Zhang ()
Additional contact information
Na Zhang: Fudan University

Economics Bulletin, 2018, vol. 38, issue 1, 262-270

Abstract: This paper demonstrates that leasing, one of the most important sources of external finance, is countercyclical over business cycles. Leasing is easier to finance and provides operational flexibility, although it costs more in the long run. The benefits of leasing are particularly important to firms with financial constraints and high uncertainty. Also, firms face tighter financing conditions and higher uncertainty during recessions. Therefore, leasing is more attractive during recessions than booms.

Keywords: Leasing; capital structure; firm financing; business cycles (search for similar items in EconPapers)
JEL-codes: E3 G3 (search for similar items in EconPapers)
Date: 2018-02-09
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2018/Volume38/EB-18-V38-I1-P26.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-17-00585

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().