The most researchers believe that the taxshield affects the financing behavior of the company more or less, but there are few consistent opinions about it at present since there are few empirical evidences to support it. The paper regressed to the listed companies' financial data from the year 2002 to 2008 to test the taxshield effect is significant or not. Basing on the research conclusions, the paper offers the policy suggestions for guiding the listed companies to finance more rationally.The paper abandons the Multiple Linear Regression Model, choosing to use the Panal Data Model to test the taxshield effect. For interpreting the results of the financing choice of the listed companies more scientifically, we adopt the liability with interest ratio and the traditional asset-liability ratio. In the research, we analyze the debt taxshield and the non-debt taxshield, explaining the substitute relation between the both. For analyzing the taxshield effect more comprehensively, we regress the sample data classificatorily at last.The main conclusions of the paper conclude that:1) The debt taxshield effect in the financing of the listed companies in China is not significant from 2002 to 2008,but it turns to be significant from 2005 to 2008.2) The non-debt taxshield effect is significant, displaying negative correlation with the liability with interest ratio and the asset-liability ratio.3) The companies in the various industries considerate the taxshield differently in the financing process, but the companies with the various financial characteristics have the same cosideration.4) The tax system of China causes that the benefits of the debt taxshield is constrained by the non-debt taxshield and the impefect fundamental financial system.Basing on the conclusions of the research, the paper offers the policy advices about perfecting the tax system of China, accelerating the process of constructing the basic financial institutional and promoting the financing ability of the listed companies. |