The Combined Research Of Financing Behavior And Capital Structure Of The Listed Companies In China

Corporate financing has been a hot theme in the field of capital market for a longtime. Domestic and foreign scholars also made in-depth study of it, trying to find themost optimal corporate financing strategy. Reasonable financing decisions not onlycan provide financial support for the development of enterprises, but also reduce thecost of financing. Appropriate financing structures can also play a governance effectof debt which reduces agency costs. For those companies with prospects for growth,higher profit margins, they can increase their financial leverage, which allowscompanies to achieve rapid development under the help of financial resources. It has avery important significance promote in improving the value of the company. In short,reasonable long-term financing decisions for the company lay a good foundation forsteady development.This paper describes the theory on financing decisions and financing structure ofthe Western scholars, and then focus on the research of the relevance of theNon-finance Company’s financing behavior and their capital structure. Based onabove, we focus on these factors which influence the company’s financing behaviorand the relationships between financing behavior and capital structure which alsomeans how the leverage affects the financing behaviors. This article takes thenon-tradable shares reform into account on the financing behavior of Chinesecompanies, so we introduce the variable proportion of non-tradable shares. Discussedin the text, we analysis the financing characteristics of the listed companies likedescriptive characteristics and analysis of statistics through the financing andtime-scale distribution of listed companies, the financing structure, debt structure,debt levels and other aspects of the financing of China’s listed companies, we foundthat the financing of these companies act in a clear pattern under the macroeconomicbackground, regulatory policy.In empirical terms, this paper takes827non-financial corporations from2000to2009with survival of10years data for sample, using unbalanced panel regressionmodel. The panel regression analysis includes net equity financing, net debt financing,respectively, the balance ratio, the control variable. Empirical results indicate thatmarket timing behaviors exist in China’s capital market, the company’s future growth,mortgage assets, the proportion of non-tradable shares, debt financing rate have a very significant impact on the company’s behaviors. Market timing exists in China’s capitalmarket, good growth companies tend to equity financing, subject to the higherproportion of non-tradable shares, subject to non-tradable shareholders and tradableshareholders, the greater conflict of interest, and debt ratio of listed companies is low.This is consistent with the theory. The financial behaviors considering the situationand readjust the Capital Structure of listed companies have been implemented in thefinancing practices. This paper argues that China’s capital market with a specialinstitutional environment are inseparable, especially market regulation, for example,stock issuance, the size of credit limit, the repo market is not liberalized, state-ownedshares and other ills. This paper argues that companies should assess the situation inthe finance, trade-offs in order to make appropriate financial decisions.Finally, this paper presents recommendations about the optimization corporatefinance behavior and follow-up recommendations of the study.