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The Research On The Financing Behavior Of The Listed Companies Of China

Posted on:2011-03-09Degree:MasterType:Thesis
Country:ChinaCandidate:X X ChaiFull Text:PDF
GTID:2189360308976235Subject:Accounting
Abstract/Summary:PDF Full Text Request
Financing is economic behavior, from which company can meet its financial needs for capital funding. Based on different financial behaviors, different financial structures and capital structures can be formed, and thus it has great significant impact on the financial position of listed companies and their further development. Therefore, as a core of financial management, financing behavior of listed companies has become a hot issue and concerned by all communities. Due to the significant differences in the cost of financing, corporate governance and market conditions from the western developed countries, the financing behavior of listed companies in China shows different characteristics, and the western classic finance theory has lost explanatory power. In recent years, these behaviors led to lower financing capital efficiency, corporate governance failure, investors suffering from losses, the company's continued weak profitability and the entire community irrational allocation of resources, thus to analyses the financing behavior of listed companies in Chin becomes very important practical significance.This paper presents the corporate finance concepts and theories of Western financing based on the research results. By summarising and describing the status and characteristics of the financing behavior in Listed Companies in China, it is indicated that its external financing ratio is greater than that of endogenous; equity financing has higher priority than the debt financing and are also widely used in equity financing; its financing option is policy dependence and has passive behavior. Through three aspects from the select of financing cost, corporate governance structure, and financial environment, the reason of the financing behavior from listed companies in China has been discussed. According to the analysis, it can be concluded that cost of equity financing on the low side is a direct cause; Corporate Governance is the system of irrational reasons, lack development of corporate bond market and regulation of securities market vulnerability in the financing environment of China is external causes. Furthermore, the negative impact of such acts arising in the financing of China's listed companies has been analysed, and based on these, the suggestions have been given in three aspects, in which policy construction of equity financing system, governance structure optimization, corporate bond market development...
Keywords/Search Tags:Financing behavior, Financing structure, Financing preference, Financing cost, Corporate Governance
PDF Full Text Request
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