Research On The Influencing Factors Of Chinese Listed Companies' Equity Financing Preference

In recent years,with the rapid development of capital market,listed companies in our country have occupied important position in national economic development.Capital is enterprises' survival necessities,and cash generated by business activities alone can not ensure going concern.Financing is enterprises' survival way.The financing way that an enterprise chooses,does not only affect the capital structure of the enterprise itself and its long-term development,but also affect the orderly development of capital market.Capital market in our country is incomplete,and the relevant system is not fully mature,so enterprises' financing inevitably has characteristics different from that of western developed countries.Equity financing preference is the biggest characteristic of Chinese listed companies' financing behavior.This paper takes the equity financing preference of listed companies as the breakthrough point,through the reading of related literature at home and abroad,to combed the form and the actual state of equity financing preference in China.Combined with the data from WIND,RESSET and CSMAR database,this paper selects sample data of the A-share listed companies that implemented seasoned equity offerings,rights issue and convertible bonds from 2010 to 2014.The total 438 samples for empirical testing involve 382 companies.In the first place,establish a research hypothesis through the theoretical analysis of the relationship between the influencing factors and financing way.Then select appropriate variables to build binary logistic regression model to test the significant factors that affect China's listed companies financing choice on the basis of descriptive statistics,correlation test and binary regression analysis.Finally make robustness test to see if the regression result is robust by variable substitution method and random sampling method,and provide the research conclusion.Empirical analysis results show that:(1)there is a clear "Equity Preference" in Chinese listed companies.(2)different factors have different impact on the financing way of listed companies in both significance and direction,among which the equity structure,growth and volatility are great prominent.Equity concentration and capital structure are negatively related to equity financing.The proportion of state-owned shares,growth and volatility present positive correlation with the equity financing preference.On the above research results,it is suggested that listed companies establish effective corporate governance mechanism,and improve a mechanism to supervise large shareholders.What's more,listed companies should also choose diversified financing ways on their own advantages.Supervision and Administration Departments should publish relevant policy to encourage institutional investors to participate in decision-making supervision,and promote the construction of new financing rules to guide the formation of reasonable capital structure.