Research On Financing Patterns Of Private Listed Companies

With Chinese market economy rapidly developed,the proportion of private enterprises become bigger in the national economic structure,and reached to 60%in 2001.However,compared with the state-owned enterprises,the situation of the narrower financing channel,higher financing cost,and so on seriously affected the scale development of private enterprises.The rapid developed and gradually improved securities market provided a financing platform for the private enterprise.More and more private enterprises were listed successfully by different ways.Furthermore,their financing scale was greater.And their performance also was remarkable.At the same time,many economic scholars were studying the financing channels,financing structure,financing efficiency and financing risk financing problems of the private listed companies.They commonly thought that the private listed companies in our country have external financing first,then internal financing by financing order,and in external financing,equity financing lay particular stress.With the theory of modern capital structure-the endogenous financing first,then bond financing,lastly equity financing.So there existed a contradiction.This article draw lessons from foreign mature financing theory,combined with the rules of Chinese financial market and private equity structure characteristics of listed companies.And through researching financing models and existed problems,we hope to promote private listed companies to optimize financing patterns,upgrade financing efficiency.This article first introduces financing background of private listed companies in our country under economy development environment.Main research conclusion both at home and abroad are reviewed about financing structure,financing cost and financing benefit of the private listed companies.Then some definitions about financing pattern are proposed,such as financing structure,financing efficiency and the financing cost of private listed companies.Furthermore,the main theories are introduced that involves in MM theory,enterprise life cycle theory and asymmetric information theory.On the basis of the above theories and the characteristics of the private listed companies,we analyzes the current financing state with external financing as main way,Some financing problems are presented such as simple financing ways,unreasonable financing structure,higher financing cost,and so on.And China Fortune Land Co.,Ltd’s financing patterns is analyzed as an example from financing structure,financing cost and financing efficiency,etc.,during different times in detail,and the efficiency of financing patterns are studied.The company’s financing model conforms to the enterprise life cycle theory,the optimization and innovation of financing models are also in line with the trade-off theory,but later there is exogenous financing preference in which there exists equity preference in the external financing.This is a deviation with asymmetric information theory.But China Fortune Land Co.,Ltd financing model analysis indicates that they have advanced finance management and risk control consciousness,innovative financing,diversified financing channels,and new combination of financing model.For other private listed companies,how to solve the problem of the existing financing has a great deal of enlightenment.On the other hand,the theory of agency theory and the conflict of the theory of information asymmetry should also attract attention.Finally the corresponding suggestions are provided for the financial sector and the government on how to break through the plight of financing difficulties,continuous optimization and innovation of financing patterns,to ensure the benign development of the private listed companies.