Debt Financing and the Corporate Purchase of Property Insurance Evidence from Chinese Non-listed Companies

Using panel data set (2003-2007) for 4275 non-publicly listed manufacturing enterprises in the People's Republic of China (PRC), we have analyzed debt financing and corporate purchase of property insurance. The research outcomes show that the possibility and the amount of corporate to purchase property insurance will increase as the financial leverage, the interest cost of the debt. and the duration of debt are increasing. This article concludes that there are "double deficiencies" in Chinese property insurance market. On the supply's side, there is deficiency to small companies; on the demand side, there is deficiency to large companies. Those conclusions provide a new perspective on Chinese property insurance market, lags behind that of the developed countries. The research has also shown that there are peat regional differences in Chinese property insurance market.