| Financing order is the order of the selection of different financing ways when a corporation is making financing decisions, it has consanguineous relationship with financing preference. Research of financing order develops from theories of capital structure. Donalson(1961)[1] first observed that enterprise may obey the rule of firstly inner financing,secondly debt and lastly stock in financing, which interests many other researchers. Through releasing perfect information hypothesis of MM theory, Myers and Majulf(1984)[2] and subsequent research introduce asymmetric information ideas, use signaling hypothesis to explain this phenomenon, finally bring out the theory of pecking order. This theory shows: (1)information distribution among outer investors,loaners and managers takes on typical asymmetry, managers have the overwhelming advantages in the game; (2)managers would expect better achievement when they raise the debt leverage, taken the string of bankruptcy into account, the debt leverage would be a reliable signaling instrument which helps investors to estimate the market value of the enterprise;(3)when enterprise make the financing decisions, they must think it over what impact different financing decisions would lead to, balancing with the cost of capital and other factors, enterprise would finally choose pecking order in financing.In order to validate whether Chinese listed companies obey the pecking order in financing, this paper makes an empirical description, the result show Chinese listed companies have strong preference in stock financing, they do not obey the pecking order in financing, their financing order is firstly inner financing,secondly stock financing,lastly debt financing. The main reason for listed companies' stock financing preference lies in (1)during the capital markets construction, government,listed companies and outer investors play a freakish information game; (2)the development of the market of enterprise bonds was severely lagged;(3) there exists many govern problem in listed companies. So, to make listed companies obey the pecking order or more to achieve the goal of capital structure optimization and enterprise's value maximization, it is bad needed that healthy information game was played,strengthen the development of the market of enterprise bonds,optimization the corporation government structure. Thinking about the limit of this paper, future research may give the empirical research on the impact factors of financing order distinguishing different industry. |
