Study On The Relationship Between Equity Structue And Financing Action Of Chinese Listed Companies

With the development of Chinese capital market, our listed companies prefer to equity financing. This preference is mainly impacted in three aspects: First, the listed companies select the allotment as their preferred solution of refinancing; secondly, issuing new stocks becomes the popular stock financing method; thirdly, the stock financing rate is greater than bond financing. This not only is reverse to the theory of financing order ,but also is different from the financing method of the mature capital market. What is the reason for this phenomenon? We think that the unreasonable equity structure of listed companies is the essential reason leading to the financing preference of listed companies. This paper studied the relationship between stock structure and financing preference by modern financing theory and then according to Chinese fact gives the suggestions to solve the conflict between the share splitting and the financing preference. The main contents of this paper are as follows:First,simplified introduced the financing meaning and its classification, reviewed the main financing theory, illuminated the financing theories have much effect on Chinese listed companies financing, which provide a foundation to my studies.Secondly, analyzed the actuality of the stock financing, the bond financing and the equity structure in Chinese listed companies, by using binary logistic regression analysis, studied many factors impact on the listed companies financing, fourthly, and analyzed the relationship between the share splitting and the financing preference. Then, pointed out the profound reason that effect the financing according to the characteristics of the equity structure in Chinese listed companies.Thirdly, given the base approach to solve the financing preference of listed companies is adjusting the unreasonable equity structure, and indicated the method to deal with the problem of the share splitting, that is on the reasonable compensate to circulating stock holders, put the circulating of non-circulating stock into practice in stock market, realize the rationalization of equity structure of listedcompanies, ensure all stockholders share the same equity and benefit, and lead to the financing is much rational.Last, pointed out that solving the share splitting problem is the foundation to ensure the stock market develop and the key to solve the financing preference problem, the study of this paper has some valuable effects on the equity structure and the financing decision-making.