Research On The Financing Structure Of China 's Garment Industry Listed Companies

The development of the companies cannot do without the support of funds.Many scholars from home and abroad have been focused on the capital structure optimization of companies. According to the results which were gotten by many scholars in the past, there are some problems in the financing structure of China’s listed enterprises, such as: “prefer external financing to internal financing, prefer equity financing to debt financing, and prefer short-term liability to long-term liabilities.” All of these problems will affect the development of China’s listed enterprises. Therefore, more and more China’s listed enterprises have begun to pay attention on its own capital structure, hope to promote its own development by optimizing the capital structure.This article mainly takes theoretical research combined with case analysis. This article chose the financing structure of company Q which belongs to the clothing manufacturing industry. Firstly, this article introduced several commonly used mode of financing and their characteristics, then introduced the current situation of the choice of financing ways in our country, to prepare for the analysis of company Q.Secondly, based on the analysis of the financing structure and the source of funds of the company Q, summed up the financing mode characteristics of company Q,analyses the shortage of company Q financing mode and financing structure. There are four main sources of funding used by company Q, including absorbing directly investment, internal accumulation, borrowing from banks and issuing stock. Company Q’s financing mode mainly exist the following characteristics: mainly rely on external financing, internal financing is much less; preference of equity financing, debt financing proportion is lower; long-term debt ratio is low, the ratio of short-term debt is high. Generally speaking, company Q’s financing mode is worth for sure, it provided funds for the development of the company and ensure the smooth progress of the expansion of company Q. In general, company Q’s financing mode is worthy of affirmation, but it also has some problems. For example, company Q much more in favor of the equity financing, asset-liability ratio is low; company Q failed to make full use of financial leverage and business risk existed. At last, this article put forward the measures of optimizing the financing structure, aimed at the problems in thefinancing of company Q. Hope to be able to help the development of company Q and improve the financing structure of China’s listed corporation.