Research On Financing Behavior Of Listed Companies And Their Impact On Corporate Performance

Since1990, the Shanghai Stock Exchange and Shenzhen Stock Exchange were set up. Listed companies began financing in the securities market. Financing behavior is an important matter, it is not only to ensure that the company can have stable and sustainable funding, and will affect the company’s capital structure, thereby affecting the value and performance of the enterprise. Financing behavior of listed companies was changing in the past20years, and showed different characteristics in different stages.Based on the data of financing, the development and changes in the financing behavior of listed companies can be divided into five stages:the early stage of corporate finance from1990to1997; the initial stage from1990to1997; the growth stage; the adjustment period from2001to2005and the perfect stage from2006to2012. Due to the impact of the planned economic system, financing behavior of corporate depended on financial allocation before1984. Since planned economic system transformed into the market economic system, bank loans became the major financing methods in1984-1989. Since1990, equity financing gradually replaced bank loans, and listed companies began to present the preference of equity financing. There is no re-financing behavior from1990to1992and listed companies can only choose the IPO at that time. The securities market introduced allotment policy in1993, and the allotment became the only way of refinancing during the1993-1997in stock market. Until1998, listed companies had new refinance behaviors, and they were public issuance and convertible bonds. But allotment still was the main refinancing behavior in the period of1998-2001. With the changing of the financing policy, the allotment, the public issuance and convertible bonds became in the same status. Because of equity division reform in2005, the capital market was asked to suspend its financing function, so the amount of financing drastically declined. The SFC issued the Administrative Measures in2006, so the conditions of refinancing were further adjusted. At the same time, private placement became the new way of refinancing. The way became the most popular option in recent years because of the lower cost and easy to issue.The different modes of financing have different financing policies, and policies for the company’s financial performance also have different requirements, so they will produce different effects on the performance of the company. Listed companies have a lot of performance indicators. If only choosing one indicator, it will inevitably produce one-sided error. So the paper chooses12performance indicators in case of one-sided error. By means of the method of factor analysis, conducting an empirical research on the relationship between the private placement, public issuance, allotment and the performance of the company. Then compare the changes of the comprehensive ranking of the performance of the company from2008to2011. It can verify whether the performance of the company changes before and after the financing from the results. We found that the private placement has no significant impact on the company’s performance on short term, but has a significant negative impact on long-term. Public issuance has the significantly negative effects on the company’s performance both short-term and long-term. The allotment has a significant positive impact on company’s short-term results, but has no significant impact on long-term results.