| The refinance of listed companies is a very important issue in economics. For the company managers, which refinance modes should be chosen would influence the capital structure directly. For the investors, analyzing refinance modes and policy correctly is the key point of making investment decision. For the capital market, the refinance capacity of listed companies is the soul of the whole market. Moreover, with the deep-going of the reform of non-tradable shares in China, refinancing on the all circulating market is a very urgent problem to listed companies. Therefore, it is very necessary to do some related research work on the issue of refinance of listed companies.On the research basement of refinance theories and analysis of the development of refinance market in China, we found a very special feature of the refinance of listed companies in China: listed companies demonstrate strongly stock preference on SEO. So, we were trying to use free cash theory and opportunity window theory to explain the special feature of refinance of listed companies in China. Moreover, we also had done the related work on the comparison and empirical test of the refinance modes. There are there main conclusions: 1.the essential reason for the special feature of refinance of listed companies is non-tradable shares in China. 2. Each refinance mode has its own characteristic and advantages, so the listed companies should take the real situation and demand into consideration when they make refinancing decision. 3. There are differences among the effect of three refinance modes. The effect of bond which could be changed to stock is best. The effect of rights offering is worse than bond which could be changed to stock, but better than placement. The effect of placement is worst. Finally, we have raised some related suggestions. We hope it will be helpful for the listed companies to make refinancing decisions, and also helpful for the government to consummate the refinance policy. |
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