Alienation Of Financing Behavior Among Listed Companies On The GEM

Corporate financing is an important issue in financial management research. Fromthe corporate perspective, financing is a spontaneous behavior influenced by financingpreferences of the corporate and the external environment, in which the corporate choosevarious financing channels in order to guarantee business continuity and development. It isthe starting point of the corporate capital movement. At the macro level, financingbehavior of numerous corporates will affect the sound development of the capital market,which makes it the micro-foundation of macro-economic research. Therefore, researchbased on financing behavior has become the focus of attention among researchers.Combining normative analysis and empirical analysis, this paper focuses on thealienation of financing behavior among listed companies on the growth enterprise market(GEM). In a broad sense, the alienation of financing behavior refers to any financingbehavior that deviate from the maximization of company value. This paper proposes anoriginal measurement of financing behavior alienation—“financing preference realizationdegree?” Through empirical test of the qualitative model, this paper argues that financingbehavior alienation of listed companies, in a narrow sense, exhibits two features. One is thealienation of financing structure, manifested by the absolute predominance of stockfinancing,“zero” long-term liability, and the high percentage of current liability. Anotherfeature is the alienation of financing pecking order. Listed companies on GEM have afinancing pecking order that is exact the opposite to that of The pecking order theory, withstock financing taking the lead, followed by debt financing (short-term) and internalfinancing. In the following part, the paper examines the formation mechanism of financingbehavior alienation and put forward relevant solutions from different perspectives,including the institutional perspective at the macro level, capital market construction at themiddle level, and corporate managers and irrational investors at the micro level.The ultimate goal of studying corporate financing activities is to establish a financingtheory guidance system with Chinese characteristics. However, this system is not accomplished at one stroke, but a result of continuous dynamic adjustment. Before thatgoal is accomplished, we must have a strong understanding of the financing behavior oflisted companies conducted under the system of China. Therefore, while studying thefinancing behavior of China’s listed companies, we need to combine classic theories andmethods of the West with the institutional background of China’s capital market, which isalso the purpose of this paper.