Study On The Impacts The Reform Of Non-tradable Shares Has Made On The Listed Companies' Financing Behavior

The Reform of Non-tradable Shares which started in May 2005,has changed the split share structure in the capital market,and enabled the total circulating.Along with the Reform,the government promulgates some new laws and policies.In the new environment,how the listed companies will change their financing choice? Whether the financing order which is opposite to the Financing Structure Theory in the split share period will change? All these are worth to be discussed.Based on the Financing Structure Theory,integrated with the factors influencing the Companies' financing choice,this article makes a comprehensive and thorough research on the financing·behavior of the listed companies after the Reform of Non-tradable Shares.The research finds that the Reform makes the split share structure disappear,solves the main conflict of interest between circulating and non-circulating equity stockholders and then eliminates the systematic factors leading to the equity financing preference.In the company of the Reform,the government publishes the new Company Law and Measures for the Administration of the Issuance of Securities by Listed Company,and enables the bonds and the separated convertible bonds to be financing choices.All these will optimize and rationalize the financing behavior of listed company.After the Reform of Non-tradable Shares,the debt will play a very important role in the companies' financing because of its positive effects on tax retrenching and company management and the list companies will choose financing methods on the basis of each way's advantages and disadvantages.In order to prove the inevitable impact on the listed companies' financing behavior of the Reform,this article analyzes the latest financing statistics and makes comparison of the listed companies' financing options before and after the Reform.As the Reform of Non-tradable Shares is not almighty,to rationalize the listed companies' financing behavior further,the author puts forward suggestions both in the angle of government and the list companies.