Sino-us Stock Issuance Comparative Study

Until now studies about SEOs focus mainly on U.S.A stock market which is strong efficiency, and these papers studied some problems in American ,such as discount, CAR, and the relationship between company which financing in SEOs and the investing bank and so on, but the paper about SEOs industry classification on Chinese stock market which based on two-kind equity and imperfect credit and compare of SEOs between China and USA is relatively less, so through analyzing SEOs industry classification of USA stock market, this paper shows that SEOs of USA stock market which is strong efficiency and perfect credit obey basically the rule of pecking theory, but China stock market is two-kind equity and imperfect credit. And its the standard of SEOs depends unilaterally on EPS(Earning per share), which violate the rule of pecking theory .As a very important equity financing way, SEOs affect the capital structure of public company, so the paper begins from the theory of corporation capital structure. The theory of corporation capital structure consists of traditional theory, modern theory and new theory. Traditional theory is made up of net asset theory, net earning of operation theory and traditional theory.the author of modern theory of corporation capital structure is Miller and ,although MM theorem have a very good performance in promoting the theory of corporation capital structure, it has a serious defect in hypothesis and conclusion, so later scholar improved it and formed the other two important theory: bankruptcy theory and balance theory.Theory of pecking order, signal theory, theory of agency cost and the theory of control right constitute the theory system of new capital structure. According to the rule of pecking order, when a public company want to finance, firstly it should choose interior financing, if have to choose external financing, the reasonable financing order for a public company is issuing bond and issuing equity in turn.