The Research On The Influential Factors Of The Cost Of Equity Capital About Listed Companies In China Growth Enterprise Market

Equity financing is one of the most important financing way of listed companies, and sufficient and reasonable fund is the source of development for enterprises. Therefore, it is very meaningful to study the influence factors of equity financing costs for reducing the enterprise cost.optimizing the capital structure and supporting long-term development enterprises.There are a lot of researches on equity financing cost, which paper res earch is based on these. At the same time, given the actual situation in C hina, the factors affecting the cost of equity financing to listed companies are empirically analyzed at the same time. It is inferred in the study that the financing preference of domestic listed companies is equity financing different from pecking order theory, which holds financing source from successively internal, indebted and stock methods. Domestic scholars think because cost of equity financing is relatively low on growth enterprise market in C hina. The research can be used for companies to provide more constructive reference for their financing strategy in the future.At first, we summarize the research achievements on the influence factor of equity financing cost, and then introduce the basic concept of equity financing, the cost composition and basic ways.Secondly, we introduce the factors to influencing the cost of equity financing and puts forward the research hypothesis this from the five aspects respectively in basic properties, solvency, profitability, corporate governance and operational indicators. In this paper, the cross-section data of 174 listed companies in 2014 is used by stepwise regression analysis method to analyze the corresponding explanation variables.The results show the five variables are entered into the final model, including that the return on net assets, operating cash flows, the company size, ratio of book value and the asset- liability ratio. Asset- liability ratio and size of regression coefficient symbols are inconsistent with the direction assumed in this article, while the other three variables are in the same direction to the assumptions, which indicates that there are some unknown ways to affect the cost of equity financing.At the same time the five variables has higher ability of explanation for the cost of equity financing, which proves rationality and validity of equation set up in this paper.