Private Enterprises' Equity Financing And IPO Phenomena Research

This article want to try to analyze the present private enterprises' financial mode selection, and use their financial mode selection to test the applicability of "pecking order theory of financing" . Based on that, the article put forward the phenomena that the more and more private enterprises go to IPO and the problems about their IPO.First, through talking about the western capital structure theory, the article discusses the "pecking order theory of financing" combined with the present situation about the private enterprises' financing. The main idea of the western "pecking order theory of financing" is that: prefer to the internal financing, if exterior financing is needed, the bond financing is preferred. But Chinese private enterprises' financing characteristics have some differentiation: First is the internal financing, then is the bank loan and nongovernmental financing loan, the third is the stock financing, the last is the bond financing and other methods. Therefore, the Chinese private enterprises' financing mode has some differences with what the western "pecking order theory of financing" says. Then , the article analyses the private enterprises' IPO phenomena and the problems about it, and point out some positive aspects about their IPO. Besides, there are also some problems and weird phenomena about their IPO, so the article analyses the reason about the production of the problems and brings forward some suggestions .