The Empirical Research To Domestic A-share Market Financing Behavior And Effect

Since Chinese stock market was founded, many enterprises have entered into market to raise funds for satisfy their production and management demands. In recent years, A-share market financing activities become more active, so author considers that researching this question is of far-reaching significance. Based on above background, this paper will take great effort to research A-share market financing problems from two parts:first, which factors affect domestic enterprises'financing in A-share market, how these factors affect, and in which circumstance enterprises issue equity to raise money; second, the listed-company's equity financing activity will cause which influence, especially in stock market. In view of modern enterprise finance theory and predecessors research, base on the market circumstance after spilt share structure reform, this paper use from micro to macro method, probe into the behavior and effect of domestic enterprise equity financing, then observe and analyze A-share market financing problem extending on macro market, so it is of innovative.The research method will combines qualitative and quantitative analysis, and give priority to empirical quantitative research. This paper mainly applies binary choice model, vector auto regression model, and uses different test which include Granger causality test, impulse response function analysis, variance decomposition and so on, to deal with data and draw conclusions. Based on the research results, the author believe that in micro level, there is market timing selection behavior in listed companies refinancing. The enterprises tends to equity financing when their stocks are overvalued, which will lead to the decreasing of company valuations and stock returns. In macro level, there is an interaction between the total of A-share market financing and the index operation in short term. The explosion rising of financing scale would cause negative impact on stock index, while the index increasing will cause the rising of financing scale. There is a game between listed companies and investors in financing. Because enterprises have an advantage in information, they usually win easily in the game.