The Irrational Business Financing Behavior

Enterprises to raise funds through various financing, into high-yield projects, not only in the micro enterprise value maximization, and bring considerable economic benefits for the financial, investment parties; macro can accelerate cash to the high efficiencysector liquidity, optimize resource allocation and improve the overall economic and social efficiency. In recent years, Chinese enterprises are actively establish and improve the socialist market economic system, corporate financing decisions goals from the previous pursuit of yield, production value, profit maximization is changing for the pursuit of maximizing shareholder wealth and maximizing corporate value. Rational financing behavior should be the company’s capital structure can constantly optimize the final the enterprise value continuously improve the decision-making behavior. In practice, however, by many irrational factors interfere with corporate finance behavior, irrational financing behavior continue to abound. For example, some companies do not consider their own actual situation, not enough to grasp the future market direction, blindly a large number of debt financing from banks or bond markets, which greatly increased the company’s debt burden sustainable development of enterprises extremely unfavorable; some companies already have large amounts of cash, but also continue to increase, placing misappropriating from the capital market. Irrational financing behavior resulting in inefficient allocation of resources, invalid use of social resources, greatly damaged the interests of the shareholders. Listed companies in China irrational financing phenomenon is a hot issue and scholars’ research in the past few years, both from the traditional financial theory from behavioral finance theory to study this problem, to find reasons for this phenomenon. Irrational financing of listed companies in China from the existing literature shows that a major cause of the current market is not mature enough. Support will be based on existing literature to study the phenomenon of irrational financing behavior of non-listed companies.Based on this, on the basis of previous studies summarized, combined with the actual cases of state-owned enterprises and private enterprises in Wenzhou study the irrational financing behavior of non-listed companies, and draw the corresponding conclusions and policy recommendations. This paper is divided into six chapters, the first chapter briefly discusses the background and significance of the topic of the Second overview of the contents and objectives of this study, and concludes with a thesis ideas and research methods. Second chapter of the domestic and international financing theoretical literature summarized learn theoretical reference model is proposed in this paper, then, the Chapter irrational financing behavior analysis and Chapter irrational business financing behavior influencing factors analysis behind An Empirical Analysis provides a realistic theoretical foundation, Finally, through Chapter empirical analysis, combined with G enterprises and enterprises in Wenzhou, for example, G corporate financial analysis, empirical analysis of listed companies in the same industry for contrast and enterprises in Wenzhou analysis irrational financing behavior. Concludes the text of the results of the study, and then put forward some concrete steps to prevent irrational financing behavior.This article studies suggest that irrational financing behavior is widespread, mainly for lack of over-financing and financing in two forms, and the main conclusions:First, the financial market system is not perfect. China’s market economy development for many years, but never really established a fair, sound financial markets, the composition of the financial system is far from perfect, which is lead to the irrational corporate finance macro reason; business by strong policy interventions. The nature of the business will affect the business objectives, the nature of the enterprise by government policy direction; Third, the lack of rational planning, the operators of enterprise development. Corporate finance behavior by corporate governance, stage of development, profitability, corporate-owned industry and many other factors, the operator is likely insufficient grasp of these factors, which is the direct cause of the irrational business financing behavior; Fourth, irrational financing poor corporate financial soundness. In this paper, on the basis of the summary of the full text, and finally gives the corresponding policy recommendations, including:to speed up the development of financial markets, increasing corporate finance select the pathway. This includes, to further improve the financial market system, improve the efficiency of financial services to the real economy; further improve the capital market to speed up the process of listing and financing for SMEs; Second, to strengthen corporate governance. For example, to optimize the capital structure, moderate debt, to ensure the quality of assets, the quality of profits, moderate diversification, maintenance of core competencies, improve the internal control system, and enhance the dynamic management of the budget; Third, the establishment of private enterprise credit guarantee system; Fourth, strengthen civil lending risk monitoring, assessment and prevention;, the market mechanism and government mechanisms combined.