An Empirical Study Of The Non-rational Financing Preference Of Listed Companies In China

Corporate financing is one of the oldest and important decisions in corporate decision, but it is affected by many factors, like the definitions of all these factors and their influencing power, which are some of the most difficult areas and the focuses of financial theory research. When the M-M theory was put forward in 1958, there have been great breakthroughs in terms of corporate financial theory. Based on these theories, other important research results have been achieved by latter studies, and the theoretical results are supported by the practical studies in the developed countries in the area of corporate financing.Though there exist different research methods and some agreements in different groups to study the corporate financial theories, there still exist great disagreements or deviation from the practices of Chinese companies, that is, they prefer to be more irrational in terms of strong equity financing. One of the most important reasons for this deviation is that the system is the fixed presupposition in the western corporate financial theory, but is one most important factors in Chinese economic transformation. Chinese scholars inherit and use the western study methods to do Chinese corporate finance practical research, but pay little attention to the system factor.Based of the thorough research of former researches, this thesis combines the systematic and unsystematic factors together, which can affect Chinese public companies, to develop a new index to do carry out the further research. For example, the systematic factors are mainly the equity structure, insider control,the development extent of capital market, re-financing systems of the stock market, and the unsystematic factors are mainly mature indexes that brought about by Chinese and foreigner scholars.The results show that the essential reason for Chinese public companies' irrational finance preference is the systematic factor. The systematic indexes like equity structure, the development extent of capital market, re-financing systems of the stock market are significantly correlative with the public companies' irrational finance preference. As for the unsystematic factors, only the enterprise growth ability and the payoff ability are significantly correlative with the public companies' irrational finance preference.This thesis show that it is because of the specific system that the apparently irrational reaction is the rational reaction to specific system, and it is the system...