Study On Refinancing Way And Financing Cost Of Chinese Listed Company

In recent years, with refinancing scale of listed company extending year by year, it has become the main channel for listed company to raise funds. For the listed company, it has a crucial practical significance to choose the appropriate refinancing method. So, this thesis made a comprehensive study on the refinancing method and refinancing cost of Chinese enterprises using the modern financing theory.Firstly, based on the refinancing definition and theories of listed company, the refinancing behaviors of listed company were analyzed and compared. The results show that the refinancing order of listed company has deviated from the related theories in our country.Then, by analyzing and comparing the refinancing condition, the new changes of refinancing policy and the refinancing behavior characteristic of listed company at home and abroad, the article draws the conclusion that the key factors affecting refinancing methods of listed company in our country mainly consists of the five aspects: macro economy, the financial qualification, financial condition of the listed company, company insider control benefits and financing cost, and so on. Among theses factors, the most significant one is financing cost.Financing cost is the key factor affecting financial policy of the listed company, so it will provide strong support for the listed company that the financing cost is estimated accurately. However, at present, there are few studies on estimating financing cost. So the estimating system of refinancing cost for listed company was discussed in detail. After comparing the differences of rights issue, seasoned equity offering, convertible bonds and general financial method, this thesis draws the conclusion that existing models are not suitable for Chinese enterprises, and can't be applied mechanically. Therefore, according to the characteristics of the equity finance and from the viewpoint of"the clean surplus", we constructed the estimating system of refinancing costs"Discounted Residual Income Model"which is based on the dividend discount model. Considering the option character of and using the option pricing model, the cost measurement model for part cost of convertible bonds wasconstructed, too. At last, This thesis estimated the refinancing costs of all listed enterprises which had refinanced from 2002 to 2004, using these model above. The result indicated that there is intimate relationship between refinancing behavior of listed company and the refinancing cost. When the listed companies choose their refinancing method, they follow the low-cost principle, accurate measurement of the refinancing cost has certain instructive significance for the listed company's refinancing decision.In this paper, we made a comprehensive study on the characteristics of the financing behaviors of the listed company, constructed the estimating system of refinancing costs suitable for the listed companies in our country and put it into application. It makes itself valuable to Chinese enterprises to estimate refinancing costs and make refinancing decision.