Study On Influencing Factors Of Entrusted Loan Scale Based On China’s Listed Companies

After a dozen of years’development of the stock market, the resource allocation function has been significantly strengthened, financial innovation has been developed, the number of investment has been increased, one of which is entrusted loan of listed companies.With the effect of tight monetary policy and the financial crisis, entrusted loans, after a momentary silence, found a developing way in the listing Corporation and caused a great disturbance in the academic circle and practice circle. Suddenly, the listed Companies entrusted loan became "a target for all", and aroused widespread concern in the community. The listed Companies entrusted loan is in relation to the resource allocation function of stock market, the listed Companies’ healthy development and social stability, and so on. Therefore, the factors of behavior characteristics and the influence of listed Companies entrusted loan, are necessary for the maintenance of the stability of the stock market and protecting the interests of investors.This paper makes a comprehensive and systematic analysis on the listed Companies entrusted loan status, nature, the market environment and the legal environment and the existence of the risk. We based on the agency theory, free cash flow theory as the research foundation, using the method of mathematical statistics, carried out empirical research. Through the research we can draw the following conclusions:(1) There is an obviously positive correlation between the listed Companies entrusted loan and the entrusted loan interest rates. Interest rate is higher when the listed Corporations prefer loans.(2) The possibility of listing Corporation commissioned loan is reverse change relations with free cash flow and debt. From the side shows that the listing Corporation commissioned loan funds may be equity financing.(3) The listing Corporation in order to whitewash poor performance tends to using entrust loan. Listing Corporation, especially the recent equity financing ones, use other means of earnings management, too.(4) Ownership structure has a remarkable effect of on endogenous financing listing Corporation entrusted loan scale. Ownership concentration can effectively supervise the management, protection of the interests of shareholders.The empirical results show that, the listing Corporation massive loans phenomenon originates from the listed Corporation’s "money" and "whitewash" performance behavior, and different sources of funds under different motives. The listed Corporation’s sharing capital funds used in loan business, will cause the company’s capital utilization rate of main business and lose competitiveness problems. But the listed Corporation commissioned loan total negation is wrong. We should be restricted and regulated in the affirmative at the same time. This paper puts forward relevant suggestions from the aspects of the legislation and the supervision of listing Corporation entrusted loans, making the entrusted loans business tend to standardize and improved.