Font Size: a A A

Research On The Financing Structure Of Listed Company

Posted on:2009-06-05Degree:MasterType:Thesis
Country:ChinaCandidate:J SunFull Text:PDF
GTID:2189360245979696Subject:Accounting
Abstract/Summary:PDF Full Text Request
According to the modern finance theory, internal financing would be enterprises'first choice, then the debt financing, and lastly the equity financing. This theory is proved universally through the western market-economy in developed countries , however our country represents an unique financing order which is contradicted by superior financing theory. Compares with the modern western superior financing theory and the financing practices of western developed country enterprises, our country's listed companies prefer equity financing. Furthermore, experience proved that listed companies'excessive equity financing would reduce allocative efficiency of resources. Therefore, studing our country's listed companies'financing structure, correctly analyzing the basic cause of this phenomenon , is already becoming a concern for domestic economists and the market main bodies who participate in.On the basis of analyzing financing structure of china and foreign country's capital market, expounding the different cause of financing arrangement, we use capital fluidity norm of our country's listed companies to discuss financing structure and financing arrangement, in the hope of we could obtain empirical evidence of listed companies'financing behavior in its investment of capital-market ,and in the hope of we could develop a meaningful research view for corporate capital structure governance and the healthy development of our country's capital market.With the thoughts of superior financing theory, This article analyzes the similarities and differences of china and foreign financing structure, puts forward the characteristics,causes,advantages and disadvantages of our country's financing structure. Through the study on financing structure's theory of our country's listed companies, we find out that, compared with the western superior financing theory and the financing structure's status quo of western countries'companies, our country's listed companies prefer equity financing more than debt financing, moreover, their equity financing's liveness is influenced by the capital market's environment.On the basis of theory study, this article combines with other scholars'empirical research results, puts forward that stock proportion of executives,concentration degree of stockholder's rights,state-owned shares proportion,contest of company domination,competitive ability of product,growth potential, company size, profit making ability, personal income, bankrupt cost affect our country's listed companies'financing structure. Then, we use year 2005-2007's panel data of our countries'listed companies to conduct an empirical research, results indicate: cash Ratio and net cash flow per share have inapparently positive correlation on the ratio of liabilities to assets. Liquidity ratio,quickassets have inapparently negative correlation on the ratio of liabilities to assets. This indicates there's no high relativity between debt acquisition and debt paying ability in our country's listed companies's financing process. This kind of asymmetry between capital fluidity and residual rights of claim shows"the agent benefit"generally exists in our listed companies, and they have not formed a financing behavior for shareholder value's maximization ,which harmed shareholder's benefit.In the end, summing up the deficiency and innovation of empirical device, this paper suggests issues on further research, and prospects the improvement of listed companies'financing behavior and the better result of system construction of capital market at the same time.
Keywords/Search Tags:Financing Structure, Panel data, Capital fluidity, Mixed regression model, equity financing, debt financing
PDF Full Text Request
Related items