Research On Relationship Between Chinese Listed Companies And Preference Equity Financing

The financing of listed companies is a important part of their financial management. Different financing methods determine different financing structu-res. As for listed companies, their choice of financing structure not only determines their own long-term development but also has a great influence on the whole capital market of their country. The stock market has offered listed companies easy financial access, and therefore solved their financial problems during their development. But research shows that our listed companies have an obvious preference equity financing. The main reasons are: our capital market is immature; our government'over macro management; too high agent cost of our pre-dominant national stock and thereafter ineffective supervision of managers. The preference for equity financing by listed companies firstly weakens their core competence; secondly it prevents the resources optimization function of the capital market and its long-term development. So to keep our economy's health and stable development, it's very important to solve the equity financing preference problem. From the economical statistics of the capitalism countries during the bubble economy periods, we found that equity financing preference had once come into existence in western developed countries'stock market. But our listed companies have their own characteristics with the equity financing preference problem. So during our efforts in solving the problem, on one hand we explore our stock market's special problems, on the other hand we learn from the capitalism countries'experience in handling this problem, which will help us to deal with our stock market's revolution.0But our listed companies have their own characteristics with the equity financing preference problem. So during our efforts in solving the problem, on one hand we explore our stock market's special problems, on the other hand we learn from the capitalism countries'experience in handling this problem, which will help us to deal with our stock market's revolution.