A Research Of Financing Preference Of Listed Companies At The Background Of Fully Floating Market

With the split share structure reform of China's securities market to achieve substantive results, market financing to restore function, placement of listed companies unprecedented enthusiasm, a private placement of listed companies in China in recent two years, refinancing, an important means of acquisition of assets and the current China hot stock market. Equity financing is still a strong preference contrary to the theory and practice of financing the West, this article attempts to financing costs from the perspective of the controlling shareholder equity financing preference to find the reason. Governance structure of listed companies in China based on the reality on the proposed governance structure and financing costs to explain to explain the idea of integration, and so designed the controlling shareholder of the context circulation measurement of the cost method of equity financing for listed companies to provide equity refinancing preference a reasonable explanation.This article includes the following sections:The first chapter is an introduction, the main background and significance of the research framework and research methods articles were introduced, and a systematic review of the relevant literature. The second chapter describes the behavior of corporate finance theory. The third chapter describes the context of listed companies tradable refinancing behavior. Through descriptive statistics found in the circulation background, the listed companies still preferred equity offerings, private placement this particular refinancing. ChapterⅣconstruct a new theoretical framework to explain the choice of refinancing of listed companies. Governance structure of listed companies in China based on reality and theory of foreign research results, will explain the governance structure of equity financing preference explain the integration of research and financing costs. Governance structure is the root cause of refinancing behavior, and controlling shareholder of financing costs is the direct cause of re-financing options. Governance structure that will ultimately respond by financing costs, reflecting the financing costs of controlling shareholders in listed companies to determine the re-financing options. Then expanded the definition of financing costs to design the controlling shareholder of listed companies measured the cost of equity financing formula. Chapter empirical analysis, using event study on the secondary market for private placement stock performance of the empirical analysis found that private placement have a positive announcement effect, and calculate the cumulative abnormal returns. And in 2008, Shanghai A shares of the company private placement of 57 quantitative analysis of the sample, the relevant data into the derived formula for the controlling shareholder of financing costs and calculate the results. The results show that:the controlling shareholder of the equity financing costs (average 0.41%) was much lower than its debt financing costs (mean 5.98%), which to some extent, equity financing of listed companies to explain the reasons for preference. Chapter VI summarizes the main points of the text and context of listed companies for the Circulation Equity financing issues facing the countermeasures and suggestions.