Study Of Bond Financing On Chinese Listed Companies

Enterprise's creation, survival and development are closely related to financing activities. Different financing preferences and behaviors will form different capital structure. Furthermore, they will have a significant impact on the corporate governance structure, operating performance and development strategies. Therefore financing becomes the major event which the enterprise should consider. The financing structure of our listed company is very unbalance now. The proportion of stock financing is too high and the proportion of corporate bonds is too low. This structure has brings to many problems and it will finally damage listed companies. So we must solve the problem. One effective way is to make the listed company know the advantage of corporate bonds financing and use corporate bond financing actively.The study of corporate bonds in China is very few now and most of them is theoretical and in market angle. The research angle of this paper is listed company and the content of this passage is the influence study of bonds financing on listed companies'performance.This paper mainly uses the empirical and normative combination of research methods. First, the author summarizes and analyzes the predecessor's research theories and make a conclusion that the rational financing order under standard marketing circumstance is inner financing, debt financing, stock financing. Then compare corporate bonds with other financing methods and conclude the advantage of corporate bonds. Thirdly , the author proposes the research suppositions in this foundation. Then, the paper takes the listed companies which refinance with corporate bonds in 2005 as empirical samples, using the method of event study, CAR, descriptive statistics, Nonparametric tests to study the performances of these companies, hoping to make the listed companies know the advantage of corporate bonds financing and use different methods of financing from the empirical outputs..