Capital Structure And Financing Preference Of Chinese Listed Corporations

The capital structure issue is the frontier theory of contemporary economics and also one of important topic for management in modern enterprises. Being a special group, listed corporations represents modern enterprises and the capital structure is typical and representative to study on. Based on different knowledge to the theory of capital structure and the economic system of each country, the companies from different countries choose various capital structure formations and financing mode. In view of financing theory and practical of Western, corporate financing should follow the order which internal financing first and then external financing, in external financing it should be debt financing first then stock financing. However, the capital structure of listed corporate in China cares more external financing than internal financing, and also cares more stock financing than debt financing, so shows a very strong stock financing preference. The incongruous phenomenon with Western financing theory indicates the particularity of financing behaviour for Chinese listed corporation. Therefore, this paper aims to study on capital structure and financing preference of Chinese listed corporations, and discuss the deep-seated reason of this phenomenon.Based on the results of former researchers, the paper divides the influence factors into systematic and unsystematic for Chinese listed corporations; by utilizing many methods like descriptive statistics, Pearson correlation and liner regression, and also introduced SPSS statistics analysis software, the factors which affect Chinese listed corporations financing preference are demonstrated.The results show that the root cause of Chinese listed corporation financing preference is the systematic factor. The systematic indexes like equity structure, how developed of capital market, re-financing systems of the stock market are significantly correlative with the listed corporations' irrational financing preference. As for the unsystematic factors, only the enterprise's growth and payoff capability are significantly correlative with the listed corporations' irrational financing preference.