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Comparative Research On The Financing Behavior Of Listed Company Before And After The Reform Of Non-tradable Shares

Posted on:2009-06-03Degree:MasterType:Thesis
Country:ChinaCandidate:Y XuFull Text:PDF
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Split share structure of China's A-share market since its establishment has gradually formed its outstanding issues.In such a fragmented environment where a normal capital market should play the basic functions the fundamental principles of capital markets are seriously distorted.Split share structure as a legacy of institutional defects is a long-standing problem of China's capital market development.The split share structure reform is to create a new capital market platform for the capital market from the shackles of the planned economy.In this paper,the financing behavior of the listed companies before and after the Split share structure reformation will be studied.Modern corporation financing is not only associated with the capital structure theory,but also associated with the theory of corporation governance,conflicts of interests of different shareholders and the theory of controlling theory.By studding on differences between Chinese listed companies' financing actions and foreign listed companies' financing actions,we find that Chinese listed companies prefer equity financing.Some conclusions are made on this paper.One is the share issue has changed the interests between different shareholders mechanism,the interest conflict between the non-tradable shareholders and the shareholders has been solved,and there is only shareholder interest conflict between controlled shareholders and small and medium-sized shareholders.In the condition of full circulation,the listed companies' financing costs is high,if there is not a high long-term return,the company would like to short-term borrowing,such as low-cost financing channels.The increase in debt financing will inevitably play an important role in making corporate governance optimization and managers work hard to reduce to reduce external pressure.Therefore, in the condition of full circulation,financing preference of listed companies will be restrained.At the same time,China's listed companies' financial behavior is also affected by market and policy。...
Keywords/Search Tags:listed companies, split share structure, financing action, full circulation
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