Investor Behavior And Equity Financing Preference Of Listed Companies In China Studies

This paper studies in the present stage of economic development and historical context, the behavior of listed companies investor equity financing preferences. With China’s rapid economic growth, companies need capital to keep growing. China’s stock market after two decades of development, has become one of the main channel of financing. China’s listed companies was widespread preference for equity financing, many companies even if debt ratio is quite low in the case, still choose equity financing, the financing of such non-normal state and has been the practice in Western developed economies generally confirmed the financing priority order theory (Pecking Order Theory) inconsistent. China’s stock market has a strong speculative, high turnover and individual stock volatility violent and so on. Most entrants to the market without a proper understanding of the investment, their preferences for capital gains and non-rational investment behavior on a reasonable and orderly development of the stock market had a negative impact. Meanwhile, the listed companies use these features to achieve "misappropriating" objective. Stock price deviates from the value of the company, leaving the distorted allocation of social resources. The operating results of listed companies and shareholders equity has also had negative effects, so that damage to investor confidence, reduced ability to finance business, adding to the imbalance of corporate governance and so on. Analysis clearly equity financing preference of listed companies in China causes could help us better address these issues, standardize the market economy in China toward a more reasonable direction.Based on the above background, the paper on China’s economic environment and capital market characteristics do a more detailed discussion and reference data for the evidence. In the past. on the basis of comments and documentation, the use of capital market research in recent years, the rise of behavioral finance theory on the behavior of China’s capital market players to do a quantitative analysis, the financing preference shares of listed companies affected by the investors, the conclusion is The innovation of this article. This research-based approach to the empirical model, combined with the appropriate descriptive statistics and correlation analysis, the derivation of the theoretical amount of narrative and reference to the results of previous studies, theoretical support for this view. In this paper, based on previous studies, large amounts of data through the evidence, put forward four hypotheses:1, more capital into the stock market, the more likely equity financing of listed companies; 2, the greater the share price rises, the listed companies the more likely equity financing; 3, more active trading of listed companies more inclined to equity financing; 4, the amount of dividends and equity financing of listed companies has nothing to do. Then filtered A-share market listed companies and market data as the samples to the existing research is based on selected shares rose, trading activity, whether the three main variables dividends and net capital gains rate, firm size, capital structure, growth and other control variables, and explains their metrics, the establishment of a Logistic dummy variable model. Through a series of studies on the sample data and regression analysis Results Confirms this view.This article includes the following sections:first, introduced the background meaning, ideas, frameworks and research methods, and relevant literature reviewed. Second, the pecking order were explained and behavioral finance theory of financial investment and financing behavior of the explanation. Then combined with China’s listed companies financing behavior characteristics of the statistical data, according to China’s economic development and capital market development in China is derived investor behavior equity financing preference of listed companies have a greater impact point of view. Then, put forward four main assumptions of this article, and it has done an empirical study. Finally, draw conclusions and put forward the capital market financing "vision" of the policy recommendations, and the phenomenon of investor behavior research and capital market outlook.