A Study On Equity Refinancing Performance Of China's Listed Companies In Equipment Manufactruring Industry

Equipment industry is a core component of the manufacturing industry which is the foundation of economic development. For a long time, funds shortage is a prominent bottleneck in the development of China's equipment manufacturing industry enterprises. Along with the development of China's capital market, listed companies in equipment manufacturing industry can refinance in security market. This will not only make listed companies obtain financial support, but also can effectively contribute to the restructuring and consolidation of China's equipment manufacturing industry. Almost all the China's listed companies have strong preference for equity refinancing. Therefore, this paper selects the equipment manufacturing listed companies which had the equity refinancing behaviors in security market as samples and empirical studies their equity refinancing performance and the influence factors.Firstly, this paper reviews the classical theories of financing. On the basis of surveying the related resesrches in equity refinancing, this paper summarizes the equity refinancing behavior characteristics of China's listed companies.Secondly, this paper selects 14 equipment manufacturing listed companies which had the equity refinancing behaviors in 2006 and 2007 as samples and uses single financial indicators and a comprehensive evalucating system which based on factor analysis to make descriptive statistics analysis on the change of equity refinancing performance by the statistical analysis software SPSS17.0.Thirdly, based on the related hypothesis, this paper establishs a multiple regression model which embodies some aspects such as the ownership concentration, balance mechanism of shareholding, managerial equity incentives, the scale of raised funds and financial leverage level to empirical research the influence factors of the change of companies'equity refinancing performance.Finally, based on the empirical research findings, this paper brings up some policy recommendations from the angles of improving corporate governance structure, eatanblishing the industry fund for support the revitalization of equipment manufacturing industry and constructing diversified financing system to promote the equity refinancing performance of China's equipment manufacturing companies.