Corporate Finance Model Of International Comparative Research, With The Choice Of The Corporate Finance Model

Corporation financing is a very important issue in our economic development. During the economic transition period, corporation financing is characterized by inefficiency and structral unbalance, which give rise to the increasing reduction of enterprises' profit and then do great harm to the economic and financial stability. By means of comparative analysis, empirical analysis and theoretical reasoning, the paper tries to put forward a policy proposal for China's choice of corporation financing model.The dissertation consists of 4 chapters. Chapter 1 or the "Introduction" has outlined the subject and significance of this study, defined the main concepts, and especially, shown the main ideas of modern corporation financing theory. Chapter 2 has introduced two basic methods of corporation financing and compared them with each other . Chapter 3 has discussed such corporation financing models as in the U.S., Japan and Germany, summarized their characteristics, and comparatively analyzed their differences, from which the inspiration is drawn. Furthermore, based on China's reality and development objectives, Chapter 4, which is the focal point of this paper, suggests that China should adopt such a corporation financing model as the following: Direct financing should be primary for sizeable enterprises whereas indirect financing for middle-sized and small-sized enterprises.