An Empirical Analysis Of Factors Affecting Listed Companies' Financing Ways

As far as corporate financing choices are concerned, Chinese listed companies prefer to the stock financing. The financing ways of the listed companies have an important effect on not only their capital structure but also the jural relations of managers, shareholders and creditors, which determines the governance structure. Therefore, Chinese scholars have conducted researches on the factors affecting Chinese listed companies' financing ways in many aspects. However, the empirical studies haven't proved the theoretical conclusions well and there are great divarications among the empirical results.Taking listed companies in heavy manufacturing industry as a sample, this paper deeply examines the factors affecting the listed companies' financing ways by the empirical researching method, with the aid of econometric model. The study indicates that: (1) The proportion of the non-state juridical person's share, corporate size and growth are significantly positively associated with asset-liability ratio;(2) There is an obvious negative correlation between profitability, proportion of circulating share and asset-liability ratio;(3) The proportion of the state-owned share and the concentration of ownership respectively has a significant correlation with asset-liability ratio in a shape of "U";(4) Whereas the proportion of top management ownership, cash capability, mortgage assets and operating risks don't exert any notably effect on asset-liability ratio. These results imply that: Firstly, juridical person shareholders are better than state shareholders in supervising managers and strengthening internal corporate governance; Secondly, the scarcity of stock financing qualification makes it inconsistent with theoretical deduction that stock financing behavior is not related to growth or cash flow, but to profitability, which affects adversely the security market's function of optimizing the financial resources' allocation. Thirdly, the corporate behavior of raising a loan is not consistent with the relevant theories. Based on the above empirical analysis, this paper thinks that the imperfect external market system and internal governance structure are the main reasons why the influential factors can't contribute to optimizing corporate financing and governance. It is suggested that the proportion of juridical person-equity be increased and state-equity be decreased to improve corporate governance. On the other hand, it is very necessary to reform the bank sector, perfect the institutions concerning capital market and bankruptcy system. Only this way, it will be self-conscious for listed companies to make their financing behavior canonical and optimize their capital structure.