An Empirical Study On Influencing Factors Of Financing Preference Of Listed Companies In China

Financing is an important component in the financial administration of corporations, and different financing ways form different financing structures. The financing ways can not only exert an influence on the long-term development of corporations, but can also affect the healthy development of the capital market. As China is a developing country and its capital market is still underdeveloped, the financing structure of Chinese listed companies has a prominent characteristic-a preference for stock financing and a comparatively low proportion for debt financing, which makes the financing ways of Chinese listed companies different from those of the western developed countries and against the theory of capital structure.In addition, the researches on reference for financing in China mainly concentrate on the period before the revolution of stock right splitting. The predecessors can not do subsequent researches on the factors of affecting financing behaviors of corporations after the revolution of stock right splitting. Along with the accomplishment of the revolution of Chinese stock right splitting, the stock market plays a more and more important role in the national economy. As a result, to do researches on the financing activities of listed companies after the revolution and find out existing problems is significant for standardizing the financing activities of listed companies, perfecting the system of corporations, and promoting the healthy development of the capital market.Firstly, by reviewing the history and current situation of the theoretical studies on the main influencing factors of domestic and international financing preference, the thesis makes an analytic description of the characteristics of the financing preference of Chinese listed companies, and compares the characteristics with the capital structures of western developed countries and developing countries. Then the thesis makes the following conclusions: the proportion of external financing of Chinese listed companies is much higher than that of internal financing; there is a strong preference for stock financing; the asset-liability ratio is comparatively low; the structure of stock right is special. Secondly, by the empirical approach connecting factor analysis with regression analysis, the thesis makes an empirical analysis of the influencing factors of the financing preference of the quantifiable listed companies, and finds out the main reasons why Chinese listed companies prefer stock financing. Last but not least, the thesis makes a conclusion of the research, points out how the financing preference of Chinese listed companies does harm, and makes some suggestions of optimizing the financing structure of Chinese listed companies.