Equity Financing Preference Of Listed Companies In China

This article regards Chinese listed companies as the research object, and studies concretely equity finance preference and relevant problems that exist in finance structure of Chinese listed companies. On the base of analyzing the causes and influences of equity finance preference, the writer tries to put forwards some proposals to rationalize finance structure of Chinese listed companies.Firstly, through brief retrospect of modern finance structure idea and analysis of the data of Chinese and foreign finance practice, drawing a conclusion that there is a preference for equity finance on long-term finance structure in Chinese listed companies. Then the article analyses the causes of Chinese listed companies' equity finance preference, the soft restraint of equity capital cost, the director and manager pursuing to the incurrence income, interests conflicts of big shareholders and minor shareholders and the undeveloped corporate bond market in China. Secondly article analyses the influences of equity finance preference in Chinese listed companies, pointing out that under the situation of unreasonable equity structure, imperfect corporate governance and stock market, it does not benefit listed company's growing up continuously, does not benefit the improvement of corporate governance, does not benefit the optimization of capital market resource distribution and does not benefit the sound development of the capital market. Finally, the article put forwards some proposals to rationalize financing structure of Chinese listed companies, including cultivating the theory of investment of the stock market, setting up and perfecty the encouragement tied mechanism of the listed companies, perfecting the supervision tied mechanism to the big shareholder of minor shareholder and speeding up the development of corporate bond market in China, etc.