China’s Listed Companies Refinancing Prefer-ence And Performance Relationship

Capital is the blood of the enterprise; listed companies ensure more finance from capital markets could make a protection for its expansion and development. Along with the development of the stock markets, the amount of refinance of stock market companies got is half past.and it plays an important role of pushing listed companies.so have a good study of the refinance of the listed companies is important to its development in theoretical and reality meaning.In China, now the research is focus on three areas:financing preference、the relationship of financing structure and enterprise value, and the relationship of refinancing and enterprise performance. Compared to the first two of them as for the research on refinancing and enterprise performance, however, it left much room for analysis. In the aspect of refinancing, the published papers in this aspect are mainly about what kind of influence of rights offering, seasoned equity offering and issuing convertible bonds may have on the enterprise performance. But they lack of corporate bonds and bank credit viewpoint. This essay compares the change of the enterprise performance of the listed companies before and after the refinancing. Also, it makes some comparative analysis of the three method of refinancing to figure out the financing efficiency and effects on enterprise performance of different methods.In the article we have reviewed the Western classical finance theory, showed the preference of the domestic status of refinancing refinancing options and research the relationship between corporate performance status, analysis of equity refinancing, refinancing debt and convertible bonds and other re-financing characteristics,besides we also summarized the different types of business for re-election. Using average, median and statistical test for refinancing problems in a comprehensive statistical analysis, and the status quo from refinancing the direct cause of the formation, root causes, internal causes and external causes of these four aspects of analysis the reasons for refinancing the status quo.After the articles listed companies from1991-2011was selected the appropriate sample design corporate earnings corporate performance indicators as a standard, the use of mean, median, statistics and test samples were re-financing of the equity, bond and bank refinancing samples before and after5years of credit time for empirical analysis, the equity refinancing and corporate performance are negatively related, debt refinancing and corporate performance was negatively correlated with short-term positive correlation between long-term, while bank credit and a positive correlation between corporate performance relationship conclusions. In addition, and then they made three kinds of re-financing of the same contrast the impact of performance indicators, obtained bank loans and issuing corporate bonds is a positive impact on performance, equity refinancing negative impact on performance. Finally, proposed refinancing of listed companies should be preferred way of bank credit and corporate debt, while strengthening internal governance; Government should develop corporate bond market,improve the scale of debt refinancing, refinancing funds used to control the process and the effect of the use of funds assessment and evaluation.