A Study On Determinants Of Refinancing For Chinese Listed Banks

With more and more banks to go public after the tradable share reform, to study thedeterminants of refinancing for Chinese listed banks is significant in practice. First in thepaper we analyze the influence of financing methods from two aspects: internalgovernance structure of Chinese listed companies and policies and systems aboutfinancing. On this basis, the author select some listed banks which issued bond and usingequity refinancing from2004to2013, as the sample to study the characteristics offinancial factors on the impact of refinancing through empirical analysis.The analysis shows proportion of outstanding shares, ownership concentration andmanagement incentives are likely to influence the refinancing decision-making for listedbanks: higher proportion of outstanding shares can strengthen the prefer for debtrefinancing to a certain extent; High concentration of bank ownership prefer one certainrefinancing which however are unsure to determine, while the lower ones don’t have acertain preference, the optimization of ownership structure can weaken the preference forequity financing to a certain extent; The management role incentives has prefer of equityrefinance. From the policies about finance views, from the Notice about subordinateddebts can be included in the supplementary capital in2003to Notice of perfectcomplementary mechanisms of commercial bank capital in2009, with the stipulationabout cross-holdings of subordinated debt during the banking market have an impact onrefinance, so finance has obvious policy tendency. In the empirical study part of thefinancial characteristics, through univariate analysis and binary Logistic regressionanalysis, we discover that the size, profitability, growth capacity, ability to resist risks andasset quality has a significant effect on equity and debt refinancing. The bank which haslarger assets, higher profitability, better ability to resist risks and better asset qualitypreferred choice of bond refinancing. Use the method of Multivariate linear regression tointerpret the significant factors of different ways of refinance.The study of this paper shows that in the background of optimization of theownership structure, the refinancing choice of listed banks is more objective andreasonable, because the choice of refinancing ways are the same with the theoreticalexpectations on a large extent. But on the other hand, it follows the financial policyobviously. At the same time, the scale of refinancing is usually large for the listed banks,so this paper suggests that it should broaden the refinance channels.