| The companies in China go public in the course of institutional change. In the initial stage of economic reform, the institutional change returns of public companies lead to the demand of going public is in far excess of the supply, and therefore forms "the controlled equilibrium" by government. In the game of government versus enterprises, The SOEs extricating themselves from the predicaments and the profits maximization of the government itself as the prerequisites, the China government goes through the course from rigorous regulation to gradual deregulation in the respects of making rules of going public and stocks issue. The financing profits maximization of enterprises themselves as the prerequisites, the China enterprises go through the course of improving the corporate micro mechanisms of adjusting corporate capital structure and refining corporate governance structure etc. In the early 21th century, the growth of the China governmental marginal control costs about going public is faster than the growth of it's marginal control return, therefore, the market innovation ability of the governmental regulation is strengthened, the institutional normalization of securities market achieves favorable success. By contrast, the reforms of corporate micro mechanisms are slightly backward, the reforms of systems, structures and operating mechanisms about enterprises don't make that the enterprises financing optional patterns conform to the normal financing theories. The China enterprises still think of the going public or the equity financing as optimal financing option. In a word, at present, both the enterprises and the government in the course of the China institutional change still don't completely meet the abundant and necessary conditions of "the market equilibrium" about the companies going public. The institution of going public in China changes from authorized system to registered system. The institutional change needs that the macro environment of the governmental policies and laws, the micro environment of systems, structures and operating mechanisms about public companies and the present situations of the SOEs' reform etc, all should meet appropriate conditions. My dissertation comprises 6 chapters in three parts, as shown in the following: Forward, the first part, the theory piece, includes chapters 1-2, forms the theory frame of going public and the governmental regulation. Whether the companies choose going public (equity financing) or not, on theories, it can be derived from "the financing costs theory", "the capital structure theory" and the relevant factors' analyses as follows: the corporate governance structure, the corporate development stage and development scale, the corporate dividend policy, and the corporate revenue policy, etc. In addition, weighing and comparing of costs——benefits about going public is also a crucial factor. The governmental regulation theory about going public can be derived not only from the macroeconomic theories of "the social benefit approach", "the market bankruptcy theory "and "the social option theory "etc, but also from the microeconomic theories of "the principal-agent theory" and "the information economic theory", etc. And moreover, the scopes of the enterprises financing are considerably influenced by a country's law environment. The second part, the reality piece, includes chapters3-4, describes the realistic distortion of going public and the governmental regulation in China. The realistic distortion is mainly manifested in three aspects. First, the relevant factors' distortion of the China public companies. For example, the lower leverage rate, informal operating of the corporate governance structure, lower growth, smaller size, informal dividend policy, the backward tax system environment, many questions of tax policies, etc. Next, the benefits of going public in China are in far excess of its costs. The public companies possess the huge returns of the institutional change, and it...
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