Research On Financing Efficiency Of Listed Companies From China

The stock market is one of the important financing channels. Securities market is not only financing for corporation on the open market, but also optimizing the allocation of resources for capital market. Ultimately it can enhance the efficiency of the capital market and make good use of corporate funds. However, when making the analysis of the conclusions of the scholars of the financing preference and of the view of financing efficiency, there are more serious financing preference around the companies from China. After the analysis, the equity financing preference is inefficiencyThe securities market of China is constantly improving in practice after abandoning the old system with the introduction of the new market system. Because of the change and norms instituted by government. listed companies developed healthily and sustainably. Recently, the reformation and measures of equity improved the securities market. After that, the questions of equity financing preference and financing efficiency of China’s listed companies has been improved and enhanced. In this particular stage of financial crisis, however, the financing efficiency of Chinese listed companies is well concerned. Although Chinese securities market continues to improve, compared with other developed countries, there are still more serious speculative tendencies around the market and shareholding structure still has influenced on the financing efficiency. According to this finance theory and results of domestic research based on macro-background, we analyze the factors in affection of financing efficiency of Chinese listed companies after the global financial crisis. Moreover, the article put forward six hypotheses. After the definition of financing efficiency, the article compared the results of multiple regression analysis with hypothesis testing according to the collected data. It is concluded that there are many factors in the financing efficiency of listed companies. Then, the article,according to the results of study, put forward some policy recommendations to enhance the financing efficiency of listed companies from the rule of law and institution. Ultimately, the article provides a basis for decision of improving the investment environment of Chinese listed companies.