The Necessity And Feasibility Research Of The Listed State-owned Company Issuing Preferred Stocks

After the beginning of the 20th century, preferred stock as a kind of innovative financial tool has been developing and spreading globally while satisfying the need of raising funds of companies, and has gained much popularity especially in western developed countries. In china, along with the researching for multiple ways to realize state own economy, and the reform of the shareholder structure of listed companies, preferred stock has been introduced in as the financing tool and the certification of property right.Although the theoretical and empirical analysis conducted by foreign scholars have been proved to be fruitful, there is still controversy about the efficiency of the preferred stock as the financing tool and the certification of property right. Given the fact that China is in the process of economic system transition and many historical problem left, should preferred stock be spread comprehensively is a question which worth deep discussion.From finance perspective, the thesis starts with the uncertain environment faced by the market entity, takes the external environment conditions and internal operators of specific entity into account, establishes the model of optimum distribution for the exit of state-owned capital based on the Principal-agent theory under the unsymmetrical information condition, deduces the following conclusion: convertible preferred stock could effectively separates the distribution of cash flow right and the control right over state owned enterprises, allows a "contract" being signed based on the value of the enterprise between the agent of state-owned capital and the actual operator, finally achieves the efficient exit of state-owned capital—Given the fact that, in china, the options of financing tools are quite limited, only debt and common stock, it is necessary and feasible to introduce preferred stock into state-owned listed companies which probably have financial difficulties.Besides theoretical analysis, the thesis also picks several companies as the samples based on random selection to verify the earnings hypothesis from the perspective of choosing finance tools. After verification, the conclusion is proved by the behavior of Chinese listed companies that state-owned companies would prefer releasing preferred stock other than common stock.Based on the analysis mentioned above, the thesis suggests: It would be extremely helpful to introduce the preferred stock into the reform of the shareholder structure of listed companies.