Research On Financing Structure Of Private Listed Company In China

As the reform and opening up and the development of the market economy, private enterprise should gradually become an important pillar of our economy, but the growing contribution to the financing system for the community does not match the available resources they get. There are irrational financing structures, such as over-reliance on current liabilities, equity financing instruments, ignoring the use of long-term liabilities, which is not conducive to long-term development of private listed companies. This paper seeks to explore the financing options of private listed companies, the financing structure and influences to the development and hope to make a little contribution to the development of private economic.The first part of the paper put forward the background, significance, research methodology and framework; define basic concepts for the basis for the study after. The second part introduces the theoretical system of financing structure, summarizes the status of developing countries and the research results of financial structure in China. The third part based on the analysis of domestic and foreign environments the private listed companies face up to. Though statistical analysis of 439 private listed companies report data from 2006 to 2009 and found that the following situation existing in the financing structure of China's private listed companies:low proportion of inside finance, the slow development of direct finance, high-current liabilities and significant differences between industries, etc. The fourth part of the paper discusses deeply the important factors that influence the financing structure of China's private listed companies. Firstly the paper use descriptive statistics on the sample, finally the paper uses multiple regression analysis method to analyze the factors that influence the private listed companies from two aspects:corporate governance and corporate characteristics. The results show:ownership concentration, firm size, profitability, product market competition and information asymmetry and other factors significantly affect the choice of financing structure of private listed companies. The proportion of state-owned shares, corporate control, growth, asset tangibility and non-debt tax shield showed no significant effects. On the base of empirical study, the paper puts forward the suggestion of private listed financing structure two aspects:the company itself and the external environment.