The Empirical Analysis On Financing Behavior And Motivation In Chinese Listed Companies

In order to make shareholder value biggest, modern capital structural theory is considered that the finance order should follow from inside to external route. The liability may efficiently promote shareholder value when increasing debt for it avoiding tax, Company should first consider debt in external financing, then equity financing,But the actual is opposite in Chinese. The empirical analysis on financing Preference in Chinese listed company over the years analysis showed: Chinese listed company has strong equity financing prefer, The finances order is equity, debet, profit subsistence, which is opposite to the Myers'finance theory.We want to research Chinese List Company, financing preference through this paper, and to analyze the reasons which exist in this kind of phenomenon, and to put forward the feasible suggestion to the reason.First, I make use the revising Myers, peking model to analyze the financing preference through gathing representative sample.The result showed that Chinese, listed companies behave in a manner that dosen,t follow the pecking order theory and that they prefer external equity financing too much in financing. Simultaneity I contrast difference of performance in pre-finance and after finance, the date showed that it is unfavorable to improve performance of Chinese listed company by preferring external equity financing.Secondly, the paper analysed on the factor affecting Chinese listed Company,s equity financing preference from the motivation of fund demand, the character of control power, the character of equity structure, institution factor, and capital to explain the distort. At last, the paper provides the countermeasure measure in order to optimizing the financing structure and resource allocation.