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Research On Capital Structure Of China's Listed Company

Posted on:2002-12-24Degree:DoctorType:Dissertation
Country:ChinaCandidate:S P ChengFull Text:PDF
GTID:1116360032457164Subject:Technical Economics and Management
Abstract/Summary:PDF Full Text Request
Enterprise financing is in the range of enterprise finance. In Chinese patterd ofpianned economy, enterpr1ses get funded mainly depending on financial allocationand fewer loans with low interest. After the po11cy of "transferring allocation intoioan"was put lnto effect,the form of financing was changed from fiscal financing in-to 1ability financing. For a 1ong time,simplex financing system and internal financ-ing capacity with low efficiency leads excessive liabilities to state-owed enterprises,which has been a significant aspect obsessing the reform and development of state-owed enterprises.With the refortheng of fund supplying system, the forging of capital market,and the broadening of financing channel,the financing structure of listed companypresents the muItifactor phase. The proportion of equity financing is much morethan that of credit financing in the capital structure of listed company. It indicatesthat listed company'S choice of financing approach has an intensive predilection ofequity financing and extremely pursues the a11ocating method of equity expending,such as scr1p issue,which is far from"pecking method"of financing approach in ma-tured market.Theutheory of 'economic rat1onal being" holds the contention that,whe ther asan indePendent economic they or as the behavior body 1ike shareholder and manag-er. The listed company makes behavior decisons which are the optimal choices andreactions to the environment restriction. At present,the listed company has a pref-erence of equity financing that is a1so a rational decision when faced with cheap eq-uity financing cost .1ow efficient administrative structure and capital market.In this paper,by analyzing the financ1ng structure characteristics of listed com-pany,the author points out that financing behavior of 1isted company is of low effi-iency and discloses that the low efficiency of financing originates in so ftning upproperty right restriction. Only by broadening structural system and financial sys-tem, establishing a set of effective impel1ing and restricting mechanism on the basisof hardening the external restriction of listed company and by means of recreatingcompany property right system, can financing behavior of 1isted company be stan-dardied,which also makes the financing structure optima1.
Keywords/Search Tags:listed compang, capital structure bonding financing, equity financing, firiancing cost
PDF Full Text Request
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