The Impact Of Controlling Shareholders On Financing Preference Of Listed Company’s Empirical Research

With the maturity and development of China’s capital market, problems arising fromthe financing preference of public companies are becoming increasingly prominent.Although scholars from both domestic and abroad have made analysis of the factors thataffect and motivations that shape the financing preference of public companies fromvarious perspectives, most of the studies proceed from the ownership structure; there areless empirical studies on the character of controlling shareholders.This paper takes the ownership structure of controlling shareholders, their incentivedegree on managers and their characters as the starting point; it studies the influence of thecontrolling shareholder on a company’s financing reference. First, this paper makes aliterature review of former studies on the company’s financing reference and sums up thefactors that influence it from both domestic and abroad; second, this paper gives definitionsof such concepts as the financing reference of public companies and controllingshareholders and proposes the theoretical basis of the company’s financing reference; thenbased on this, it makes empirical analysis of the subjects investigated from2010to2012with such methods as descriptive statistical analysis, correlation analysis and OLSregression analysis by establishing three regression models from different dimensions andmaking use of eight variables; according to results of the empirical analysis, this paperdraws its conclusion: ownership concentration of the controlling shareholders, theirincentive degree on managers as well as degree of their ownerships separation aresignificantly and positively correlated to the equity financing preference of publiccompanies, respectively; the controlling shareholders in SOEs are positively correlated tothe equity financing preference of public companies; degree of the controllingshareholders’ ownerships separation in non-SOEs is significantly and positively correlatedto debt financing reference; finally this paper makes a summary of the whole text andproposes effective policy advices.From this point, research results of this paper will be conducive to the optimization of public company’s capital structure, the perfection of corporate governance and eventuallythe improvement of integrated corporate value.