China's Listed Companies Financing Preference

Companies must conform to the "cost-profit" principle when they choose the financing way. They should achieve the highest investment profit at the lowest cost. But now, in our real economic lives, listed companies are showing a strong preference for equity financing because of many internal or external causes. The preference for equity financing has negative influence to the development of a company itself and the efficient allocation of society resources, and furthermore, it will hinder the development of our country's economy. Therefore, we must analyze the causes, look for the solution, change the preference for equity financing, and choose the financing way scientifically and reasonably.This thesis is separated into four chapters. The first chapter introduces some elementary knowledge and some basic conceptions about the aspect of company financing, and briefly introduces the development of the theory about a company's financing construction. The second chapter mainly analyzes the present situation of our country's securities market and the financing ways of listed companies, and further, puts forward the view that our country's listed companies have a strong and apparent preference for equity financing. The third chapter mainly analyzes, in theoretical and in practical aspects, the most reasonable and the most scientific choice sequence of financing way, then puts forward the proposal that listed companies must raise suitably the percentage of credit financing in financing construction. In addition, this chapter deeply analyzes the causes and the influence of the preference for equity financing. On the basis of analyzing the causes of the preference, the last chapter puts forward some proposals or suggestions through taking advantage of some financial engineering thoughts and views, in order to make our country's listed companies have a reasonable financing construction.This thesis mainly researches the behaviors of company financing on the point of companies, and analyzes the capital construction of our country's listed companies. I hope it will give the related people some references.