Empirical Research On The Financing Preference Of The Listed Companies Of China

In this paper, one of the hot problems, which is being discussed by academia andenterprises at present--the financing preference of the listed companies has beenfurther investigated, and the causes are analyzed and studied by quantitative andqualitative methods. After summarizing the typical theories in this field, we haveanalyzed the domestic and international financing modes of the listed companies andcarried on comparison of macroscopic and microcosmic of them on this basis, and wehave described the overall financing situation of the listed companies of our countryby the statistical analysis. Then, we built up the decision factors of independentmodels of this paper on the foundation of modern capital structure theories, andselected the samples, and then we utilized multinomial logit models to explain andpredict each explanation variable. Later, we utilized ordered probit model andlikelihood tests in order to examine the financing preference of the listed companiesof our country for the whole sample and sub samples which were picked up on thebasis of time and policies. Finally, we utilized unit capital EVA model to examine theefficiency of the equity financing funds of the listed companies, thus verified thatequity financing is not an optimum financing method and reasonable financing choiceof listed companies in our country.The research of this paper indicates, the superficial reasons of the financingpreference of the listed companies is the financing cost--The equity financing cost ofour country is lower than the debt financing cost. Equity right division, policy defectsof government system and imperfection of capital market development are the deepreasons of equity financing of listed companies of our country. Finally, we putforward the corresponding policy recommendations according to the conclusionstudied.