Analysis Of Financing Efficiency And Ownership Structure Of Listed Companies In China

Efficiency has been the core issue in the development of the capital market. In recent years, Chinese theorists have had heated arguments on the nature and development of the stock market: Whether China's stock market has achieved the basic efficiency of resource allocation. The key reason of Low efficiency of China's capital market lies in the defects of stock separation. According to the capital market effectiveness theory, it is generally believed that the efficiency of China's capital market is low, Even inefficient. However, does it explain that the overall efficiency of China's stock market is low or inefficient?The aims : research1,to analyze the relationship between equity structure and financing efficiency.2,to testify our model's explanation ability to the reality.3,comparing the finance performance difference of listed companies which finished Share Reform and those who did not, to prove that the dominance of state-owned shares equity structure has negative influence on financing efficiency.The second : main content and viewpointWith comparative Analysis of equity financing efficiency and the structure of China's listed companies, we have come to this conclusion : (1) the higher the proportion of state-owned shares, listed companies will have a more negative impact on the efficiency of the financing; monopoly structure of the equity financing is responsible for inefficiency. (2) a certain degree of Corporate shares contributes to internal governance and stock performance of company. (3) Shares in circulation tradable share does not affect Financing utilization. There are many domestic and foreign researches about the relationship between ownership structure and financing efficiency .most of them concentrated on the best ways to construct the financing structure. As domestic scholars have limited exploration into efficiency of financing of the listed company's with stock separation. and the stock separation belongs to the "Chinese characteristics", therefore doesn't have the universality and practice of reference, it is understandable for foreign researchers not focus on this area for the study.So there is still no unified theories to completely explain listed company financing issues, all theories are from the perspective of a particular problem. However, we believe modern enterprise operating mode is based on capital management as the core business mode rather than products manufacturing. The target of listed companies is to seek to maximize the it`s value in the capital market. In the initial stage, the development stage, and the mature stage of a company, financing is always the central procedure. A good or bad financing efficiency will affect the quality and efficiency of an enterprise. The theory of financing is mainly about structure of the financing arrangement. As to the structural arrangements, and domestic and foreign researchers are working hard to find an optimal financing structure theories, but we think that there is not an optimal financing structure in financing process. The optimal financing structure should be in accordance with economic environment for enterprises to be in, with a balanced mutual coordination and promotion of the financing structure. This structure can be free of interfere of monopoly of the equity structure, the constraints from the system and external, internal factors as well. The third : the main contribution and inadequate1,compared and analyzed the financing efficiency of listed companies who finished Share Reform.2,Based on the domestic study and research abroad on ownership structure and financing at home and abroad on the efficiency study, the writer has come to the conclusion that the reason of low financing efficiency of listed companies is monopoly and suggested Equity Balance is a possible solution.So far, the Share Reform has been started for more than one year, which is so short that the comparability of the sample data collected may have defects. The analysis on the efficiency of performing and structure of China's stock market can not go in-depth, which primarily is due to the collection of data constraints, as well as lack of relevant indicator system.