A Comparative Study Of Equity Financing Efficiency Of Listed Marine Industry Company In China And Korea

China is a maritime country with huge resources and potential for development, but not a marine power in the 21st century. With the growth of China’s economic development and resource demand, the government has increased efforts to develop marine economy. A historical task with strategic significance is the exploitation of marine resources, development of marine economy and construction of marine economic powerful nation.In a market economy, enterprises must be supported by sufficient funds in order to survive, grow and develop. However, some enterprises must consider financing because of lack of funds. The major forms of financing are internal financing, equity financing, debt financing, foreign financing. Equity financing is a major financing mode of Chinese Enterprises.Financial capital in the development of marine economy plays an important role as a leading force in promoting the development of marine industry. Equity financing is one of the marine industry’s important financingchannels. Stock-right financing predilection oflisted com panies in china is common. Comparing to other financing, equity financing has its own advantages:equity capital is absorbed with no mortgage, pledge, guarantee, small equity return and dividend expense pressure. In addition, equity financing enhances the ability to resist risks. Besides, the Chinese stock market is still not perfect, Andequity financing fundsin some companies are not used effectively. So research on marine industry equity financingof this article is a certain degree of practical significance.The main body of the paper is:firstly,30 listed marine-industry companies in Korea are selected, the representative indicators are the amount of equity financing, asset-liability ratio, growth rate of main business income and Tobin’s Q. While 34 listed companies of same industry were chosen, the representative indicators are total net equity financing, ownership concentration, the degree of non-tradable shares, asset-liability ratio, the main business income growth, ROE, Tobin’s Q value. Secondly, DEA model was used to-analyze the Equity Financing Efficiency between companies both in China and Korea. The result is equity financing efficiencyof Chinese enterprises is higher than Korean enterprises, and results of comparative study ofequity financing efficiency between the two countries is helpful for Chinese enterprises to learn from the useful experience of Korean companies infinancing options.In recent years, China’s marine economy has continued to outpace the growth rate of the same period in the development of the national economy, the total marine economy continues to expand. More and more scholars involved in the study of marine industries. But the study of financing options is rare in marine industry. This study will help to understand how to increase the efficiency of the equity financing better.Inadequacies of this paper are:Firstly, there are many ways to study the marine industry including a comparative study of bond financing efficiency of listed companies, comprehensive financing methods, this paper is aimed to study equity financing efficiency.Secondly, the selected companies are not fully representative of the whole marine industrydue to the limited data acquisition channels.Thirdly, marine industry is also very developedin some countries like Japan and United States. But Korea is the only country selected for comparison studies, while more relevant countries should be included in the in future studies.