| Equity financing(seasoned equity offering, SEO) refers to the refinancing after the initial equity financing(also known as an initial public offering, IPO) of listed companies. When a large amount of cash needed to meet the financing needs of new projects or expanded reproduction, the companies will carry out financing again by way of issuing shares. Modern Western Theory "Pecking Order Theory" has already been widely demonstrated and accepted, but companies in China suffer "paradox" in the financing structure, that is the Chinese listed companies has a strong preference for equity financing. A large number of research results of many experts and scholars have confirmed that. In 2015, 221 companies experienced the IPOs, more than 250 listed companies in the year experienced the SEOs, and the scale of funds raised was far exceeding the size of the IPO financing. In 2014, the IPO scale of the A-share market was 61.3 billion yuan and the refinancing scale was 488.2 billion yuan; In 2015, because of the abnormal fluctuations in the stock market, IPO was limited, but the scale of IPO reached 140.6 billion yuan and the scale of refinancing was 914.4 billion yuan, the financing continued to expand. Some scholars forecast that in 2016 the scale of the equity financing will continue to expand, the scale of IPO may reach 400 billion yuan, respectively, scale of refinancing will reach one trillion yuan. Thus, equity refinancing of listed companies has become the important sources of funding.China has a vast territory with abundant resources, it contributes to the imbalance of economic development. The performance of listed companies in different regions have different performance, this difference also includes different degree of the preference of equity refinancing. This paper divides our country into three regions by using the clustering method, the first region includes some of the provinces in eastern coastal areas; the second includes the middle and a few provinces in Northeast China; the third kind of regions are the western and central regions. By analyzing the situation of equity refinancing of listed companies within three regions, we come to the conclusions:(1) There are significant differences about the equity financing times in different areas. Companies in the eastern coastal areas has the highest number, the central and northeast regions are in the middle, while the western and central regions have the lowest times of refinancing.(2) The scales of equity refinancing of listed companies also have significant regional differences. In the order of the first, second, third region, the ratio of equity to total assets refinancing scale was descending.(3) Combine the above two conclusions, it is believed that there is significant regional differences of listed companies in equity financing preference. In the most economically developed eastern coastal provinces and cities, due to the high concentration of ownership of listed companies and the good condition of company’s financial capacity, companies have the highest degree of preference in refinancing within the area; followed by listed companies in central and northeast regions, due to the low concentration of ownership, its financial performance is lower compared with the companies in first class area; in the most backward provinces in western and central regions, minority shareholdings of listed companies have the lowest preference.(4) Except verifying the test variables of this article- location factors, the paper also demonstrates the influence of other factors about listed company which are related to equity financing preference, it shows that the larger the size of the company is, the more free cash flow the companies have, the greater of proportion of the largest shareholders the companies contain, the more prefer shows in the listed companies when refinancing in shares, which is consistent with a number of research scholars. |
