Listed Companies In China, The Problem Of Financing Research

In the market economy, financing is of utmost importance for modern companies, in which the way and the structure of financing are critical, so the problem of financing becomes the first thing needed to be solved for our listed companies. It is thought that the best order of financing for listed companies is equity financing, debt financing and internal financing. However, listed companies' financing structure is equity financing preference in Chinese.The reforms of sub-owned shares have set up in 2005. The reforms of sub-owned shares eliminates the difference of stock transfer in A market by balancing the rights between circulated stockholders and non-circulated stockholders. On the backgroud of reforms of sub-owned shares regulation, listed companies prefer to equity financing in our country. Sub-owned shares causes many questions directly, has affected the exert of stock market function seriously, has hindered the raise of market efficiency. After the reforms of stock, the market environment and the governance environment will change correspondingly which the listed companies are facing: because the compensation of price, the proportion of stock has been diluted for major stockholders; Same stock, same power and same price became true between the great stockholders and the few stockholders; The standard of checking the market value will be introduced into the checking target system and so on. Above all ,the change must rise influence to the behavior of financing preference correspondingly. Then, stock financing preference vanished in our country, did not it? Based on which I study the problem of equity financing preference in listed companie, we find that listed companies prefer internal financing to external financing, prefer equity financing to debt financing, the problem of equity financing preference has not been solved. Therefore, based on the western financing theories and the characteristic of our courtry, this article will make a detailed study about the reasons and harmfulness of this phenomenon, and give some suggestions on how to optimize the financing structure of listed companies.Meanwhile, I analyze equity financing and debt financing from four aspects, cost, risk, administer and efficiency,each has its advantages and disadvantages. I hope I can give some suggestions to listed companies on decreasing cost, evading risk, perfectinggovernance and raising efficiency, thus the capital structure can be perfected.