Financing Structure Of Listed Companies In China

With the establishment of the1990Shanghai Stock Exchange and Shenzhen Stock Exchange, China’s capital market in the past two decades has grown, and the securities market financing function more and more significant. With the rapid development of the stock market and the growing size of China’s listed companies have a good place of equity financing, but at the same time, we also found that the financing structure of listed companies in China in the development process with the different characteristics of listed companies in developed countries. The financing structure of the corporate governance structure, market value, the cost of capital and the overall economic growth and stability, has a significant impact, should be given adequate attention. This article meticulous research for this phenomenon. By Western capital structure theory and research on the characteristics of the financing structure of listed companies in developed countries, the paper argues that the financing structure of listed companies should comply with the pecking order theory, that enterprises should first raise funds endogenous financing, and exogenous financing outside source of financing, the first debt financing and equity financing. The financing structure of listed companies in China is contrary to this theory. This paper focuses on the analysis of the reasons for this phenomenon, and focus on the specific method to optimize the financing structure of listed companies in China.This article consists of the following five parts:Chapter1:Introduction Pointed out that the research background and significance of the topic, and to define the concept of the financing structure, at the same time of Western financing structure theory to sort out and elaborated.Chapter Ⅱ:developed countries listed companies financing structureMore in-depth study, overall financing structure of the developed countries listed companies to choose the United States and Japan, the two representative countries and concluded:characteristics and capital structure theory research consistent with the financing structure of listed companies in developed countries, enterprises in developed countries to raise funds Select endogenous financing, the endogenous financing not only external financing to meet capital requirements, financing and exogenous preference debt financing and equity financing.Chapter3:financial structure of listed companies in ChinaBy using the value of the listed companies in the overall data collation, analysis of the characteristics of the capital structure of listed companies in China. The capital structures of listed companies in China have a clear preference for equity financing, inadequate endogenous financing and asset-liability ratio characteristics.Chapter4:equity financing preference of listed companies in China causesAnalysis, the reason for the current capital structure characteristics listed companies in China:the development of China’s capital market is immature reason a large number of outstanding shares of the listed companies in China to raise funds from the macroeconomic capital markets overall environment and micro single listed company Endogenous financing of listed companies is restricted, low cost of equity financing, as well as listed companies is the lack of effective governance structure.Chapter5:countermeasures to optimize the financing structure of listed companies in ChinaAnalysis of the causes of equity financing preference of listed companies in China, further studies to optimize the financing structure of listed companies in China’s countermeasures. This article from the stock market, bond market, banks and internal aspects and propose a solution.