Internal Control Of Chinese Listed Companies Under The Equity Financing Preference Study

The capital market, especially stock market, plays an important role in the modern national economy. The stock market always reflects the performances of one country's economy. But there is an exception in China in the past few years. And so many listed companies are only interested in raising money in stock market. The domestic and international scholars carried on a great deal of research, but it seems inefficient. After 2001, the stock market take a sudden turn, and experienced a long bear market. And this causes the capital cost by issuing stocks and other means. If the listed companies'goal is the maximization of the market value of the company, they will not be interested in issuing new equities. There is some weakness in the previous researches of this field, so we have to start to analyze the problem in a new perspective with some new methodology.I find out by the comparison analysis, that in China under the present special environment, there is a serious problem of factual internal control phenomena in the listed companies. This is the important reason for the listed companies'equities financing preference. Because of various reasons, it became a serious internal control market in the Chinese listed companies. And so far we have no good resolution to this problem in the current system. The agent of the company takes the residual control and claim of the business enterprise, which causes the asymmetry between the residual control and the residual claim, the managers of the business enterprise have strong incentives to obtain beside cash. The other implicit income mainly includes raising its social status and incumbency consumption. Exactly in this kind of case, from where can the listed company find financial recourse? They still have strong, thirst for investing, but funds from where come? The comparatively loose...