The Influential Analysis To Market Timing Behavior Of Chinese Listed Company

Traditional financial theories based on rational people hypothesis and efficientmarket hypothesis. Researches to corporate finance based on these two hypothesesintroduced serious traditional financial theories. However, the real world proves thattraditional financial theories can not explain all market situations. So researchersintroduced psychological factors such as getting information and investment behaviorto researches, many problems can not be explained by traditional theories can beexplained by behavioral finance.In the aspect of financial research to corporate capital structure, in 2002, Bakerand Wurgler researched corporate capital structure based on corporate behavioralfinance in their article (Market Timing and Capital Structure); their conclusion wasthat the corporate capital structure is a cumulated result of corporate using financingchances and timing raising capital. In 2004, Aydogan Alti in his article (HowPersistent Is the Impact of Market Timing on Capital Structure) used the IPO data inthe American securities market form 1971. And his result was the scale of raisingcapital is influenced by the hot degree in market. In"Hot Market"the raising scale islarger than in"Cold Market".This article aimed on analysis to the influence of Chinese listed companies IPObehavior to their capital structure, dividend policy, through theory analysis andempirical analysis. Firstly, based on traditional financial theories and behavioralfinancial theories, analyze the influences of companies'IPO behavior, and then basedon the financial data of Chinese listed companies make empirical analysis. Becausethere still not scholar analyzed the influence of companies IPO timing behavior tocompanies'capital structure and dividend policy based on Chinese listed companies'data, this research fulfill this blank, and this is an innovation of this article.In the opinion of this article's author, that although there is aimed capitalstructures in Chinese market, when company is going through the IPO progress, themanager of company can timing IPO, when the securities'market indexes are rising,they issue more stock. The short term capital structure of companies in influenced,and the timing IPO behavior makes this influence is different between"Hot Market" and"Cold Market". In the long run, after decreasing of capital structures leaded byIPO, companies'debt to assets ratio will increase to the level before IPO gradually. Inthe aspect of setting dividend policy, there is also market timing phenomenon,companies set dividend according to investors'psychological expect model,sometimes for fulfill investors'expect borrow money to issue dividend. It lead that inthe first year after IPO, the dividend ratio is generally higher then other years.