Financing Preference And Capital Structure Of Chinese Listed Companies

From the traditional theories to the recent ones of agent models, signal models, the theories of corporate financing discussed the corporate financing strategies under the more realistic hypotheses. And they still show that the different financing methods would effect on the value of the enterprise because of no existence of the ideal completely competition market. As the result, there should be an appropriate proportion between the ownership financing and debt financing. Only when the two ways mentioned above are arranged reasonably can the minimum leveraged capital cost of corporate be realized. Furthermore, the company can be administered effectively when the relational group's interest is balanced. However, according to the pecking order theory , the general financing sequences are the internal fund-raising, debt financing, and ownership financing because of the higher cost of the ownership financing, which are positive confirmed from the experience of most developed countries.However, the financing behaviors of the Chinese listed corporations conflicted with the pecking order theory and the general financing sequences of companies in developed countries. A lot of scholars point out that Chinese listed corporations appear the strong predilection on the ownership financing, however, the investment return of financed fund is quite low. Based on the previous researcher's results, the purpose of this paper is to do some research on these issues and put forward corresponding recommends after analyzing the current status of the market .Whether do the companies still show strong predilection on the ownership financing at present? What is the characteristic of the capital structure? Therefore, what kind of the effect has on the value of the company? I hope my study provides not only theoretical but also practical consult on prompting our listed corporations develop healthy.The dissertation consists of four parts as follows:Chapter 1 is the literature review including the definitions, summary of the theories of capital structure which provides the theoretical foundation for the following researches. In Chapter 2, we first make an international comparison in order to propose the international experience which can be used in our country. Second, we analysis the background and variance of the environment have been made of our listed corporation because our financing decision must be made accorded with our objectively situation. In Chapter 3, following the comprehensive analysis of the capital construction of our listed corporations, we obviously can draw a conclusion that the Chinese listed corporations show strong predilection on ownership financing. Meanwhile, it is necessary to expatiate the interaction between financing behavior, capital structure and corporate governance. Last, we build up a model to test the relativity of capital structure and corporation value. Chapter 4, recommends have been given on how to optimize the capital construction and enhance firm value, which is the purpose of this thesis.