Research On Listed Companies' Alteration Of Financial Capital In Hubei

The phenomenon of the listed companies altered the financing capital's usage in a large scale has been gain wide attention in recent years. It will be harmful for credit foundation and influence the regulative function of the securities market. Hubei province is a landlocked region of which take reform pilot earlier in standardized shareholding, some listed companies in Hubei province have also altered the financing capital's usage in recent years, which not only affect the long-term development of their own, but also impact the overall development and the regional economic of Hubei province. Therefore to study the alteration behavior of listed companies in Hubei province is of great significance in the standardization of their investment, the raise of their business levels and the operating results.First of all, the paper analyzes the phenomenon and features of the alteration in Hubei province. Some factors which affected the listed companies' alteration behavior of Hubei province are analyzed in the next part, such as the financing costs, the equity structure, the behavior of the listed companies' manager and feasibility research. Then the paper select listed companies in Hubei province which altered the financing capital's usage in 2001 as a sample, analyzes the bad impact of the alteration on their operating results and capital markets. Finally some corresponding remedies and measures are suggested, such as improve the equity structure and feasibility research, perfect the financing system and the incentive and constraint system of manager.The problem of the listed company's alteration of the financing capital's usage in Hubei is a microcosm of our country. In order to regulate it, enhancing the regulatory mechanism may achieve some short-term effects, but a fundamental solution is to establish a sound capital market.