Equity Financing Preference For Listed Companies In China

Modern enterprise especially the listed companies in China's development is more and more inseparable from capital support.Enterprise capital financing like flowing in the blood in the body, as to enterprise's daily operation and long-term development has vital role.Modern financial theory to study shows, corporate financing structure of choice is very important, because it not only affects the company cost of capital for companies, is related to the survival and development of enterprises, and corporate governance structure and macroeconomic operation also closely related.According to the relevant data shows, global different countries enterprise financing structure is different, the same countries in different industries of financing structure is different also, even in the same industry of different enterprises financing structure difference is very big.Our country to be listed's financing preference is an important research direction of finance, various financing preference eventually form different enterprise financing structure. Enterprise's financing way not only affect the long-term development of the enterprise, but also affect the healthy development of the capital market. Our country to be listed's financing feature is preference equity financing, financing of exogenous and endogenous financing debt financing relatively rate is low. This with the situation of our country has close contact, China is in developing countries, the market economy is not perfect, securities market is not perfect, and this leads to our country appear on the market company financing preference is different from western developed countries in China, financing preference order has own characteristic.This paper first named the essay research background and significance, then detailed pectination and introduction to the western enterprise financing development theory, and appropriate analyses the applicability of the theory in our situation. This paper argues that the listed companies in China equity financing preference can use behavioral finance theory explanation. The third part is through a lot of data quoted that Chinese listed companies as the typical equity financing preference characteristics, and this preference for China's capital market and capital efficiency in the use of such impact. After from behavioral finance from the perspective of market irrational and managers of listed company irrational two financing behavior is analyzed in search of the listed companies in China which affect the main factors of equity financing preference. Finally, the full text are summarized, and puts forward the listed companies in China equity financing preference two aspects, the advantages and disadvantages of this makes the final chapter of countermeasures.