The Interest Rate Market And The Financing Structure Of Listed Company

In June1996, the release of inter-bank offered rate marks the beginning of China’s market-oriented reform of interest rate. As one of the main line of development of financial markets in recent years, China’s marketization of interest rates has gradually entered a substantive stage since2012, an interest rate formation mechanism based on market adjustment will soon be formed in our country. With the continuous progress of China’s interest rate market, the financing environment and cost of financing of listed companies have had a corresponding change. Theoretically, as a rational economic man, he should adjust the asset allocation and financing structure according to the principle of profit maximization in the face of the changes. In practice, however, the listed companies in China have the preference for equity financing for long. Equity financing preference of listed companies is not only contrary to the pecking order theory, but also not conducive to the improvement of corporate governance. When asset market price determination mechanism was completely handled by the market after the completion of China’s interest rate market, whether the equity financing preference of listed companies will be corrected and how their financing structure will change? This paper attempts to answer this question.This paper emphatically discussed the financing structure of limited liability companies from the relationship of enterprise system change and the corporate finance structure. After sorting out the classic financing structure theory in the corporate system, combining with special background of the change of China’s enterprise system and the special ownership structure, this paper did an empirical verification for the financing structure of listed companies in China with the actual data of listed companies from the view of the empirical analysis. The results show that the financing structure of listed companies in China is completely inconsistent with the pecking order theory, listed companies have a significant equity financing preference; the interest rate market does affect the capital structure of listed companies in China, but the degree of influence is small compared to the internal control factors; special property dual structure and its short-term behavior in the Transition Period have a serious impediment to the optimization of the structure of corporate finance. Even market-oriented interest rate reform are completed, the listed company’s equity financing preference characteristics will be no fundamental change. If the basic role of interest rate market in allocating resources supposed to play, the basic premise is to deepen the reform of state-owned enterprises. Finally, from the level of national macro-control, a number of policy recommendations to improve the financing structure of listed companies in China are raised.