Research On Chinese Listed Companies' Financing Decision From The View Of Behavior Finance Application

Behavioral Finance is the perspective of human behavior from the economic realities,since the Limited Rationality Hypothesis of Behavioral Finance could better follow the real situation of financial and economic market than the complete rationality hypothesis of the traditional finance theories,it could more effectively explain many phenomena. At present,this theory is on the fronties of the finance research and application in many western counties. At the same time,it's also a very hot topic.China has just started the study on Behavioral Finance very recently with most of the study focusing on the area of investment and few on application. So it is significant theoretically and realistically to study financing from this angle.Generally,when a listed company makes financing decision,it should cinsider about financial structuring,financing timing and the amount of capital it plans to leverage. Due to the defects of Rationality Hypothesis and the different systems between Chinese and western countries,western finance theories are not completrly applicable to us. Therefore,based on the theory of Behavioral Finance,this paper is intended to bring some useful topics for the financing decision of Chinese listed companies. The structure is as follow:Chapter 1,Introduction. Elaborates research background and the meaning of choosing this topic. It reviews domestie and foreign related literatures and Put forward the idea,define related concepts,the frame and the research method of the PaPer. Chapter 2 is the theoretical basis. Review of Behavioral Finance theory and then introduced emphatically the core theories-prospect theory. And simply enumerate related disciplines with this research. Chapter 3 main by using descriptive statistics method,Collecting large quantities of data,analysis of financing decision characteristics of Chinese listed companies. And we find that Chinese listed companies have been preference to equity financing and they also change their financing timing and the amount of capital to leverage according to related regulations,which lead irrational actions of Chinese listed companies. Chapter 4,Analysis of how subjects inside affects Chinese listed companies,financing decisions. Chapter 5,Analysis of how subjects outside affects Chinese listed companies,financing decisions. Chapter 6,Main findings and suggestions. Proposed research conclusions and suggestions.