The Motive And Effection Of Chinese Listed Company

In the latter part of the financial crisis,the listed companies began to notice theleasing can be their financing tool and even bring greater benefit for the overalldevelopment of the company itself, therefore the listed company chooses itself as lessoror lessee to step into the leasing industry to pursue their own development. Thisphenomenon has caused a lot of attention from the insiders the leasingindustry,regulatory authorities and scholars.Around this phenomenon, the task of this paper is to study the role of the two partsleasing transactions?which the listed companies involved in financial leasing industryplay different identity, that is the lessee and the lessor. Then we analysisthemotivationof different listed companies involved in financial leasing industry aslessee or lessor, as well as related issues about the cash flow using of listed companiesand financial diversification and the problemof leasing industry.The main contents of the article and conclusions can be roughly divided into threeparts:Firstly, from the listed companies which step into the leasing industry withplaying the role of lessee as our research starting point. In this part,we test whether theforeign leasing theoryapplicable in the Chinese market. Through the research, wefound that the substitute relationship between the leasing and debt financing have beenfounded in Chinese market, the reason is that they are both havinga kind of long-termcontractual relationship for a certain cash flow,which can play an constraints role, butwhat difference between the is different transaction form, most of China's listedcompanies choose many transactions in the form of financial leasing in the form ofsales-leaseback, rather than foreign company which choose finance lease or operatinglease and other forms of direct leasing form. After we confirm the substituterelationship between the leasing and the debt financing,we study the diffrence betweenthe sell-and-leaseback through the logit modle. We find that the term of the financingand the state own shares is the most importent reason which can affect the choosing ofthe two finacing styles.Finally, this partused the event study method to test the marketreaction of China's listed companies doing sell-and-leaseback. We find that,sell-and-leaseback transaction itself makes investors believe there is suspicion of abuseof the cash flow. Thereby causing the listed company to sell-and-leaseback the marketreaction is negative. And if a listed company is facing financial constraints, whiletaking this financing form, then it will result in a more positive market reaction,because sell-and-leaseback can ease tensions and create a good expected in the shortterm. And this part of the more important conclusions should be drawn at the present stage, the listed company to the lessee way into the finance leasing market moving butmore convenient access to credit resources is not due to equipment investment.Secondly, we continue to select the listed company as lessor which step into theleasing industry as an entry point to study of the behavior of listed companieswhichbecoming the lessor and the motivation of this phenomenon. In this part of thestudy, our reaserch is based on the theory of lessor's motivation. We found that theexisting theories regarding the foreign companies to become the lessor can not explainthe phenomenon of lessors'"blowout” in Chinise market. By selecting the binary modelof panel data, our study found that Chinise listed companies as lessor enters motivationof financial leasing market is to get that part of the profits of the financial sector ishigher than the real economy. And this part of the study also explains why the tradingvolume of the largest in the world of finance lease is high, but the finance leasepenetration rate is not satisfactory.Finally, from the perspective of the demand and supply of financial leasingindustry and the development trend of the worldwide and China's macroeconomicleasing industry, the operating characteristics of the financial market, respectively, forlisted companies involved in the leasing industry and finance leasing industry itselfgives the relevant policy recommendations. This part is also an important contributionto the study of leasing theory.