Research On Factories Affecting The Financing Structure Of Listed Companies In China Under Asymmetric Information Environment

Compared with the points of the Pecking Order Model and the financing structure of companies in west modern countries, the listed companies in China have the behavior of the widespread equity financing preference. The proof tests that the listed companies loving equity financing excessively can lower the efficiency in installing of resources. Therefore, research on the financing structure of listed companies in China and reasonably explaining the equity financing preference of the listed companies in China become a hot point that the local economic scholars and market everyone pay attention to. Because of the capital market in China existing serious asymmetric information and the listed companies in China having the widespread of the Principal-Agent relationship, this article along to theoretical way of the Pecking Order Model, expands the assumption of the Pecking Order Model, researches financing structure of the listed companies in China by combining the equity agency costs with the adverse selection costs which asymmetric information cause. The theories research indicates, The relation between management equity and debt rate is negative, an increase of management equity will reduce the equity agency costs, both management equity and debt rate are substituting mechanisms each other of controlling the equity agency costs. The relation between internal control degree and debt rate is negative, an increase of internal control degree will cause the listed companies in China prefer to the equity financing. The relation between the private benefits and debt rate is negative, an increase of the private benefits will cause the listed companies in China prefer to the equity financing. So does the Bankrupt Costs. On the basis of theoretical research, this thesis combines other scholars' result of empirical study, makes use of the panel-data of three years from 2001 to 2003 of listed company in China to carry empirically study on the factories affecting the financing structure. The results of empirical study shows, the relation between management equity and debt rate is remarkably negative, which tests that an increase of management equity will reduce remarkably the equity agency costs. The relation between internal control degree and debt rate is remarkably negative, a strong internal control degree has a remarkably positive influence to the listed companies in China prefer to the equity financing. Both the private benefits and the bankrupt costs affecting the financing structure of the listed companies in China are different from the industries. In the manufacturing industry, both the private benefits and the bankrupt costs have no remarkably influence to debt rate. In the retail trade industry, the relation between the bankrupt costs and debt rate is remarkably positive; the relation between the private benefits and debt rate is remarkably negative. So, the bankrupt costs has no remarkably positive influence to the listed companies in China prefer to the equity financing; but the private benefits having remarkably positive influence to the listed companies in China prefer to the equity financing is different from the industries. It has no remarkably influence to the listed companies in China prefer to the equity financing in the manufacturing industry; it has remarkably positive influence to the listed companies in China prefer to the equity financing in the retail trade industry. At the same time, we can find out that the listed companies in China prefer to the equity financing have relation with the industry factor, the importance of those influence factories are different from industries. In the manufacturing industry, the listed companies in China preference to the equity financing primarily comes from the positive influence of internal control degree. In the retail trade industry, it primarily comes from the positive influence of the private benefits, the positive influence of internal control degree following by. Finally, the writer makes some suggestions to rationalize the financing structure of the listed companies in China on the foundation of research conclusions, and looks forward to the further research.