Correlation Of The State Ownership And Financing Methods

The financing options of listed companies not only determine the effectiveness of the effectiveness of the finance, but also produce a more extensive impact. For listed companies, whether the option of the methods of financing is appropriate or not is the crucial factors that will affect the quality of listed companies. For the macro economy, the option of the methods of financing will affect the effectiveness of resource allocation. By examing the financing behavior of listed companies, many scholars have found that they have a strong preference for equity financing. However, it may bring many negative effects to the listed company and the whole capital markets. Under the special institutional settings, listed companies that owned by the State account for the majority of them, and thus their financing option represents the characteristics of large enterprises in China in the whole stock market. Therefore, the system analysis of the option of financing methods of listed state-owned enterprises under the actual situation of China, has theoretical and practical significance to improve the effectiveness of corporate governance and realize value maintained or added of state-owned assets. Based on the special institutional settings, this article analyzes the options of financing methods of listed state-owned enterprises through the perspective of the ultimate controlThis paper uses data of Shanghai and Shenzhen listed companies from 2001 to 2006, to exam the influence of the state-owned equity to equity financing, debt financing and internal sources of finance from the perspective of the ultimate control. At last, we analyze the influence of the methods of financing through the nature of ultimate controller, the separation of two rights and three levels of state-owned controlling shareholder, and then draw some important conclusions.First, the state holding listed companies and non-state-controlled financing behavior of listed companies have significant differences. And compared to non-state controlled listed companies, state-owned listed companies have a higher rate of debt financing; both equity financing was no significant difference; state-owned listed companies is lower than the source of financing non-state listed companies.Second, the state holding listed companies and non-state holding listed companies, the degree of separation of ownership and debt financing rates are significantly positive correlation with the equity financing rate and the rate of endogenous negative relationship financing.Third, the state holding listed companies, and local government-controlled listed companies compared to the control of listed companies in the central government's debt financing has a lower rate and higher rate of equity financing, the central government-controlled listed companies and local governments Control of endogenous financing of listed companies was no significant difference.