An Empirical Study On Financing Performance Of Listed Private Enterprise In Zhejiang Province

In recent years, equity financing has become one of the most important financing ways in the capital market of china, and the performance of listed companies has also been a focus in both academic and industrial field. The current domestic empirical study of how does the listed financing influence the enterprise performance is most focused on state-owned enterprise listed restructuring or equity refinancing, rather than on the private enterprise listing financing, and has not only been established a theory system, but also has different dispute on the effect factors of financing performance, while in this paper, exploring the change of private enterprise performance before and after listing and its hidden influence factors are targeted.This paper mainly based on the Pecking Order Theory, Agency Cost Theory, Corporate Control Theory and Signalling Theory which all belong to the western enterprise financing theory research framework. The problem of performance change in private enterprise in Zhejiang province is studied stand on the reality of capital market reform and development of china and the analysis of their present situation and characteristics after list. The80private companies registered in Zhejiang province listed in Shanghai and Shenzhen A-share stock markets between1994to2008are selected as the sample of the empirical research which starts from the investigation into the performance changes of the sample before and after list, and then employs the method of factor analysis using10basic indicators13fixed indexes of performance evaluation system of Chinese listed company to evaluate the listed financing performance comprehensively of the private enterprises in Zhejiang province. And then, the linear regression model is established in which the integrated performance indicator is as a dependent variable to test how do the public financing behavior, agency, surplus management, the enterprise characteristics, list opportunity and other factors affect the financing performance of private enterprise of Zhejiang province. A further method of classification of inspection is adopted for the variables whose overall performances are not significant in the regression model. The phenomenon of performance change caused by the differences of influence factors is deeply analyzed in five ways of the profitability, operation ability, development ability, debt paying ability and market performance ability which all represent the business performance, and the internal mechanism of how do the factors affect the enterprise operation is revealed correctly and effectively.The empirical results shows that the performance of the private enterprise of Zhejiang province decreases after financing in varying degree, and what cause this decrease largely relates to the capital control ability, internal management structure and the surplus manipulation before listing. And on that Basis, as the process of listed enterprise financing involves different subject’s interests, this paper have made recommendations at three levels of the market investors, the private listed companies and the regulators, so as to expect promoting the adjustment of financing policy in domestic capital market and the healthy development of the private economy.