Study On Refinancing Of Listed Companies In China

Firms can't develop without capital expanding, so financing is an eternal topic for all the firms. Since the beginning of 1990s when stock market was established in China, the total amount of direct financing has been increasing continuously over these 10 years, and a financing system with diverse tools of financing has been preliminarily shaped. To be an important part of firm's financing, refinancing has displayed unusual vigor in recent years, but some contradictory phenomenon also arose, such as "the paradox of equity financing preference", and many listed companies only care about raising money but don't pay attention to transform its mechanism. Thus, this thesis makes study on the refinancing behavior of listed companies with qualitative analysis and quantitative analysis, and tries to find out the causes behind these contradictions taking account of the method and the price of refinancing.Through the theoretical analysis and the empirical analysis, the thesis confirms that the preference of equity refinancing does exist in China at present. To investigate its reason, this is not created purely by the financing cost element; special equity structure and financing environment are also important reasons. The empirical analysis also indicates that the price of rights offering is mainly influenced by the stock price in the secondary market. Under such mechanism of pricing, it is possible for listed companies to control the stock price in order to raise money by refinancing.In the first place, the thesis reviews and summarizes all the research result of financing theory. Then, it introduces the survey of refinancing of listed companies in China, and analyses the whole characteristics in respect of the size, the method, the industry, and the region distribution of refinancing in recent years. The third chapter conducts the research of refinancing method, and analyzes all the causes that the conclusion violates Pecking Order theory. The fourth chapter puts emphasis on refinancing price. We consider that refinancing price (especially equity refinancing price) is not only related to the investors, listed companies, but also affects the normal order of the entire stock market. The thesis establishes the model of determinants of rights offering on the basis of the data from 2002 to 2005 using stepwise regression method, and makes an analysis on the empirical results.Finally, corresponding suggestions are proposed. Firstly, to finish the split-share structure reform as soon as possible. Secondly, to establish a multi-refinancing system and to develop and perfect the corporate bond market. Thirdly, to strengthen the supervision and standardization of the refinancing behavior of listed companies. Fourthly, to perfect the structure of corporate governance, to establish and perfect the incentive mechanism, and to strengthen the restrain of management right.