Analysis On Financing Preference Of Listed Companies

"An army marches on its stomach". On the battlefield in the mall, the business operators to want to in the fierce competition to gain advantage, we must first prepare enough "forage"--capital.A variety of sources of corporate funding varied, according to the sources of funds can be divided into internal financing and external financing. How to elect the best in many sources "forage", become all business operators of war are to be solved before a top priority. And battle hardened Suning, is in a critical period of transition, the author to the identity of the enterprise management, using case analysis method, analysis of Suning’s financing from the perspective of capital cost and capital structure, two major long-term financing, equity financing and debt financing are compared and analyzed. At the same time, through using the financial indicators of the effects caused by the two kinds of financing ways of the enterprise comprehensive evaluation, that equity financing cost is lower than the cost of bond financing of the conclusions, and puts forward some corresponding suggestions.First of all, this paper in the first part of this thesis topic, the research background and significance of equity financing and debt financing preference is introduced, also after a careful reading of related topics in China and abroad research literature, giving the corresponding evaluation, and puts forward problems and the research prospects.Secondly, this paper in the second part introduced when analyzing Suning financing case used in the main theoretical basis, capital cost and capital structure theory; at the same time, the paper analyzes the financing background Suning where, namely our country currently enterprises financing situation, our enterprise performance is the obvious preference of equity financing, so with doubt into the third part:Suning is the same with equity financing preference?Again, with the problem to the main part of case analysis, starts from the capital structure of Suning, followed by analysis of the Suning listed since the financing process, Suning also has equity financing preference; therefore I turn on the reasons for the analysis, contrast equity financial capital cost and the cost of bond financing, found equity financing in our country the actual payment of the cost is much lower than bond financing, thus also explain the preference for equity financing. In addition, the author found that equity financing restrain earnings per share, reduced the profitability of the enterprise, the bond financing through financial leverage on corporate profitability has a role in promoting.Finally, the author according to the research of Suning that equity financing although the cost of capital is lower than that of bond financing, but for enterprises, brings positive effect than bond financing, so within a reasonable range of financial risks, the author advocates Su Ning, and other listed companies in debt financing, to Su Ning even other listed companies in preparing for the "forage" programs that provide effective energy in order to, so as to enable them to benefit in the competition in the market and its development.