Study On Financing Decision And Corporate Value Of China Listed Companies

The financing decision of enterprises is one of the hot topics in the theoretical field. China owns the most potential capital market in the world and the characteristics of listed companies financing especially deserve a further study.This paper consists of eight chapters. Chapter 1 expounds the background, the object and the scope of the study, and also presents the general idea, framework and method in doing it. Chapter 2 gives a detailed review of relevant research, and launches some general comments on its application in the China's capital market. Based on the evolvement trend of assets liabilities ratio in the China's A share market, and the characteristics and differences of capital structures in every industry, Chapter 3 deals with the determinants in the capital structure of listed companies from diffferent perspectives using the static and dynamic panel data model. Chapter 4 testifies that the debt funding cost is obviously higher than that of stock rights, which is the direct reason why the listed companies always prefer the latter one. Chapter 5 classifis the listed companies according to the assets liabilities ratio, and demonstrates the relation between the debt funding ratios of listed companies and corporate value, and how corporate value works as a signal to debt funding ratios on the basis of the relation between the debt funding, corporate governance and the corporate value. It finds that the debt funding ratios of listed companies whose assets liabilities ratio is between 30%~60% has the direct ratio to the corporate value, and the higher the corporate value is, the more probable that a company want to debt financing. Chapter 6 proves that in order to obtain the qualification of SEO and increase the price of SEO, listed company has the strong motive to adjust the profit to increase the return, after analyzing the IPO and the opration performances of SEO companies using non-parameter test. Chapter 7 first comments on capital structures on the theory basis of profit maximization, benefits of shareholders maximization and corporate value maximization, then verifies the best capital structure of the motive to maximize corporate value in 12 industries, which is basically under 50% and still there are some differences from international level. The last chapter makes a summary of this study, and some suggestions are given.