An Empirical Study On Equity Financing Preference Of Small And Medium Sized Enterprises Board Of Listing Corporation

With the developed countries has been widely confirmed different financing order theory, China listing Corporation generally exists the phenomenon of equity financing preference, which domestic and foreign scholars have conducted extensive research to discuss and put forward to explain the strong evidence. However, these previous studies is mainly conducted on the basis of modern finance, assuming that market participation is a "rational economic man", which ignore the non rational behavior deviation existed in the process of investment decision, then the conclusions may be biased inevitably. Behavioral finance will take psychological factors into the financial study, considering the non rational factors of financial market, therefore, studying the equity preference theory from the perspective of behavioral finance, may make a more comprehensive explanation.First of all, this paper is based on the review of the research on the financing theory and based on the research results of behavioral finance, which might make more comprehensive interpretation of the preference of equity financing in china. Behavioral finance points out, that investors may be affected by the impact of non rational psychological deviation in the process of investment decision; management’s using of irrational investors may lead to overvalued equity financing opportunities, because China’s capital market has been created shortly,therefore investors are not mature more vulnerable to non rational factors disturbing,which could lead to China’s listing Corporation financing preference shares.Secondly, this paper takes the current situation of the SME board of listing Corporation as the research foundation, which carries on the research of equity financing behavior theory of market timing introducing financing for the SME board of listing Corporation. This paper takes the SME board of listing Corporation in the 2010-2014 years of quarterly data for the study sample, through the construction of Panel Logit model of the SME board of listing Corporation financing preference index and empirical research. Empirical research findings show that, the SME board of listing Corporation tend to be in their share price level is higher for equity financing, SME board of listing Corporation choose equity financing opportunity exists the phenomenon.Finally, based on the summary and analysis of empirical research results,this paper puts forward policy suggestions from four aspects of market, government, companies, investors. This study contributes to a more comprehensive understanding of China’s equity financing preference phenomenon, also provides certain reference for the supervision department to make relevant policies and regulation.