Analysis Of The Influence Of Industry Factors On The Financing Preference Of Listed Companies

The theory of capital structure is an important part of financial theory.The question of whether there is an optimal capital structure and how to choose the capital structure has always been the focus of academic research.After Myers and Majluf put forward the Pecking Order Theory,foreign and domestic scholars have made a lot of empirical verification based on the theory.Many scholars also explore the factors that affect the corporate financing preferences,and have conducted plenty of empirical studies.Those empirical studies show that the capital structure of firms is affected by many micro factors,and also affected by industry factors and macro factors.However,study on the influence of industry factors on financing preferences of listed companies has not yet been carried out.Based on the development of China's capital market in recent years,I adopt empirical analysis method and use the Ordered-Probit model to test the financing preferences of listed companies in different industries in China,compare differences of their financing order,analyze the main factors that affect their financing behavior and explore how industry factors impact on their financing order.The empirical results show that industry factors do have a significant impact on the financing preferences of listed companies,and listed companies in different industries follow different financing order.Industry factors not only directly affected their financing preferences but also indirectly affected them by impacting on micro factors.Finally,I put forward some suggestions based on the conclusion above.