The Research For The Factors Affecting Listed Company’s Selection Mode To Equity Refinancing

Accompany with the rapid economy development and gradual improvement ofmarket system in our country, listed companies’ growth is at an ever-increasinglyfaster speed. A large number of listed companies need external capital to support therapid development. Equity financing is the preferred financing channel, and theadditional and rationed shares have become the most two common equityrefinancing mode in China. Although these two are the result of listed companies’independent choice, the choice will inevitably be an important issue concerned bylisted companies. Therefore, research on the factors influencing China’s listedcompanies’ choice of equity financing channels has significant theoretical andpractical meaning.What factors will affect the listed companies choosing between rights andadditional issue is the main problem in this paper. The article choose A-share listedcompanies in Shanghai and Shenzhen from2009to2012as the research object anduse principal component analysis and logit regression to test factors affecting equityrefinancing option of listed companies. The empirical results show: the larger thecompany is, the more inclined to choose additional issue; the better Company growthis, the ability to attract investors is stronger, in order to get high profits, company willchoose additional issue; issuance will change each shareholder’s stake, but for thecompany’s better development and equity structure’s rationalization, the company islikely to choose additional issue; The weighted average return is positively related toequity issuance way; the company is more inclined to additional issue when investorsentiment is high; P/e ratio and asset-liability ratio cannot become a influence factorfor evaluation of listed companies equity refinancing preference. Finally, pertinentpolicy recommendations are putting forward.