The Research Based On The Non Rational Point Of China's Listed Companies Financing Decision Making Behavior

The traditional corporate finance theory use the combination of theoretical analysis andmodel research to find out the best financing decision sequence, but the precondition is the"effective" and" rational", that is the market is effective, the participants are rational completely. Butover the past thirty years, due to the stock market abuse gradually, a large number of" abnormalphenomenon" appeared in the stock market, such as equity financing preferences instead of the casewith the pecking order, all of this showing that the market is not fully effective, Plus some marketparticipants irrational, the traditional corporate finance theory hypothesis condition is alreadyunable to meet. So the behavioral corporate finance theory began to introduced human psychology,behavior and other aspects into financial markets research, In order to explain these economicbehaviors different or even opposite to the perfect theory.Based on the traditional finance the basic finance theory, theories of behavior finance,behavioral finance on the financing decision theory are introduced in this paper. Then analysisChina's listed company financing features and present situation, then discuss the reasons leading tothis situation, separately from the capital market, external environment, internal own situation,related psychological and behavioral factors of these three aspects to illustrate the potential toinfluence decision makers eventually develop financing decision. Mainly from the behavioralfinance irrational aspects to explore the market under the non rational financing decision makingand management under the non rational financing decision and how effect. The market is notcompletely effective; make empirical Analysis on the market under the non rational investors in themarket timing, and how managers can use the wrong stock price to have the opportunity to equityfinancing. This article is from the perspective of behavioral finance irrationality to conducttheoretical and empirical analysis, from a new perspective carries on the thorough discussion of theChina Listed Companies' financing decision making behavior in capital market, affirmed theexistence of irrational financing behavior, and it is hope to give a more reasonable explanation ofChina's listed companies financing decision-making behavior.