Analysis About The Financing Preference Of Chinese Listed Companies In Terms Of Cost

The research object in this article is financing behavior of listed companies in China. The article point out listed companies in China have a excessive preference of equity financing to debt financing after analyses the present situation of financing behavior of listed companies in China. In recent years there are a lot of Chinese scholars have make massive research about the causes of the preference of equity financing of listed companies in China from difference situations. But all these researches have a common limitation that can not always carry out the positive analysis about the financing cost. This article think that whether debt financing or equity financing, any financing way has the cost, and the most important standard about the rationality of external financing strategy and the financing structure is financing cost.At first, this article make the theoretical analysis on the financing cost was from the investor, the company superintendent and the company major stockholder. The article think that the financing cost measurement from the investor's situation is the company "the real financing cost", but the financing cost measurement from the superintendent's situation is was "the name financing cost". When the company was controlled by the large shareholder, the major stockholder cost was the true financing cost of listed companies. Secondly, the article take the companies which have make rationing stock or secondary public offering from 2002 to 2004 as the sample and has established a series of economical measurement model, and calculate the financing cost from the investor angle and the company major stockholder situation, then draw a conclusion that "the real financing cost" is much higher than "the name financing cost" or the financing cost of the large shareholder by making a positive analysis about the influence factor of financing cost. Finally, the article put forwards some proposals to rationalize the financing behaviors of Chinese listed companies, including impelling superintendent of listed companies to foster right idea of capital cost, improving the mechanism of corporate governance and building an effective capital market in China, etc..