The Financing Patterns From Stock Market For Private Enterprises In China

In the past over 20 years, private enterprises in China have been developing greatly with many restraints including financing. It is very difficult to finance for Private enterprises, which has become the main bottleneck interfering with their development. Private enterprises financed firstly from stock market in 1992 when ShenHuaYuan came into the market. Since then, many private enterprises have adopted financing from stock market as a new and important financing pattern. Meanwhile, many of them have succeeded in entering the markets. Especially the board of small and medium-sized enterprises of Shenzhen was established in 2004 which can offer another financing channel from stock market for private enterprises. Nobel Prize for economics winners Modigliani and Miller studied the relationship between enterprise's financial structure and its value under complete competitive market and symmetrical information conditions and obtained the famous MM theory in 1958 which started the modern enterprise financing theory. In 1970s, with the development of enterprise financial theory, enterprise debt risk analysis was introduced into the traditional enterprise financing theory and the famous balance theory was put forward based on the logic relationship among enterprise financing structure, enterprise behavior and enterprise market value in terms of bankrupt cost. In 1980s, owing to the expansions of microeconomic theories such as enterprise theory, property right theory, trade expenses theory and information economics, the asymmetrical information theory has been introduced into enterprises financing. The behaviors of the operator and investor have been analyzed based on financing order theory and financing structure theory. The developed countries have paid much attention to small and medium-sized enterprises financing and obtained the systematic and deep research results. In China, how to financing for national industrialization was studied in 1950s. However, the financing for private enterprises was studied (concentrated on analyzing the reasons for the financing difficulty) in 1990s.The study on financing from stock market for private enterprises started later, although many achievements have been obtained by scholars, some references on its financing efficiency can't been found. The above-mentioned statuses in quo of financing from stock market for private enterprises have offered much space and clear thinking for this dissertation. Besides foreword and conclusion, the dissertation is made up of four parts: First part carries on theory analyses to financing patterns from stock market for private enterprises in China, which is used to illustrate the rationality of adopting financing patterns from stock market for private enterprises enterprise at present. According to enterprise financing order theory, it is reasonable to choose financing from stock market for private enterprises. Second part analyzes the statuses in quo and problems of financing from stock market for private enterprises. The choice of the financing patterns for private enterprises is also discussed. Based on the statuses in quo of financing from stock market for private enterprises, financing from stock market should be the prior choice of financing for private enterprise at present. The third part evaluates the efficiency of financing pattern from stock market for private enterprises in China. Based on the analyses of financing efficiency from stock market in terms of private enterprise in detail, an evaluated model is established, and an example is presented to illustrate its application. The fourth part puts forward some countermeasures and suggestions to enhance financing. The government should play a positive role in financing from stock market for private enterprise; The financing environment should be continue perfected step by step; Private enterprises should make great efforts to improve their financing abilities from; and pluralism tactics should be carried out. The innovations in this dissertation mainly concentrate on the third part, where the efficiency of financing pattern from stock market for private enterprises in China is discussed in detail.