Equity Financing Bias Of Listed Companies In China

China's capital market has been a great deal of development since its creation, it also contributed to the self-financing and diversifying the sources of finance. However, the capital structure, changes in the capital structure, financing and other aspects of the conduct of listed companies in China for the financing of the statistics are analyzed in this paper, contrasted with the developed countries, the listed companies in China reached an equity financing bias trend. This behavior is inconsistent with the developed Western corporate finance.In this paper, data and theoretical analysis shows that equity financing bias of listed companies with a variety of adverse effects. it not only greatly weakened the efficiency and the efficient use of capital, damaging sustainable development, Also weaken the function of the capital market to optimize the distribution of resources, tremendous blow to the confidence of investors.This paper attempts to find out the crux of the equity financing bias. The research results are already widely used in the regression analysis of factors, factors often from the industry, company size, efficiency, capital structure, the performance of the company and other factors to find the reasons. This method has the advantage of being analysis of data accuracy is quite convincing. But the phenomena is unique in China's capital market, it should look for the causes of the country's capital market from the system. Since the cost of capital is an important factor in choosing the mode of financing. This paper starts from the cost of capital, and gradually taps the underlying causes, while clarifying the relationship between all of the reasons. Finally, it finds out key points of the logical relationship from the equity financing bias, then some policy proposals to solve the problem.The innovation of the paper is the introduction from the cost of capital, begin to search for reasons for the systemic factors; and establish logical relationship for the factors that seem to be independent, in order to facilitate the resolution of the problem.