Study On Determinants Of Refinancing For Chinese Listed Companies

After the reform of non-tradable shares, corporate debt market is gradually opening up. In this background, the study on determinants of refinancing for Chinese listed companies is significant in practice. First in this paper we analyze the influence of financing methods from tow aspects: internal governance structure of Chinese listed companies and capital market environment. On this basis, the author use some listed companies which issued corporate bond and used additional funding from 2007 to 2009, as the sample to study the characteristics of financial factors on the impact of refinancing through empirical analysis. The analysis shows that ownership structure in corporate governance, board structure and management incentives are likely to influence the refinancing decision-making for listed companies: The optimization of ownership structure can weaken the preference for equity financing to a certain extent; The impact of board structure on refinancing options have different views, conclusions can not be unified; The management role incentives in China at present is not significant. From the perspective of capital market conditions, the debt financing market is too lagged, which influence the refinancing choice of listed companies, and the poor debt channels make many listed companies tend to equity financing. In the part of empirical research for financial characteristics, the univariate analysis and binary Logistic regression analysis showed that the size of listed companies SIZE, asset-liability ratio DR and the Tobin Q influence great on the refinancing. The company which has larger assets, lower debt ratio, weaker the ability to grow preferred choice of corporate bond financing. In addition, taking into account the private placement of non-openness, the author also takes the public issuance and corporate debt as sample to make empirical research. The results show that, in addition to the above three factors were significantly, ROE effect on the impact of refinancing is also significant, ROE the higher the more likely the public issuance of corporate finance, so empirical results are consistent with the hypothesis.The study of this paper shows that in the background of optimization of the ownership structure and the improvement of corporate bonds market, the refinancing choice of listed companies is more objective and reasonable.