On Equity Financing Bias Of Listed Companies In China Under Large Shareholder's Controlling

Myers famous sequence financing theory(peeking order theory)that the financing of enterprises ,the order is the source of financing, debt financing ,enquity financing is final. Corporate finance practice in developed countries to support this conclusion. however, the Chinese listed companies Perform in a diverse way: first share pecking, then debt peeking, at last internal peeking, which shows a great preference for share peeking. How this equity financingpreference is formed? In this paper, based on previous studies, from the perspective of shareholder control, trying to answer the following three questions: (1) At present, what kind of financing prefer has the companies in China? (2) Why our country's listed company have the financing preference? (3) what sides to improve on the financing preference of listed companies in China to make the enterprise value maximization?The text has adopted the research approach of the norm to analyse,with qualitative analysis and quantitative analysis and comparing and analyzing etc.based on pecking order theory and corporate governance theories, from Chinese listed companies unique and complex Equity structure characteristics to examining the Equity financing preference of listed company. Through the ownership structure of listed companies and financing preference characteristics of descriptive statistics, we found that the highly concentrated ownership structure of listed companies to form the strong control the phenomenon of large shareholders on the equity financing ,expressed strong preferences, and such non-rational Financing Preference bring many adverse effects. The text also analyzed the listed companies i equity financing preferred motive that the direct reason is the majority shareholder to avoid dividends lead to equity financing and low cost; intrinsic motivation is a major shareholder under the control of internal governance imperfections lead to listed corporate finance decision-making tends to a large individual shareholder Preference; external reason is the imperfect of capital market. Finally, Puts forward recommendations for improvement.