Empirical Research On Seasoned Equity Offering Market Timing Behavior Of Listed Companies In China

Listed companies issue new equity had been a hot topic in the China's academic circles in these years, one of the main function of capital market is provide companies with financing channels for their better development and growth, thus establish a bridge between financial capital and the real economy. Chinese listed companies often chose to carry out a series of refinancing plans after their IPO to meet enterprises'capital needs,. In China, it is easier for a company to carry out a refinancing project than IPO project, Refinancing of listed companies in the capital market size have played a very high proportion of the whole financing scale, once the companies financing motives become non-rational, the purpose of financing obfuscation, there will be a greater negative effect. Therefore, China's listed companies of the financial equity refinancing the theory behind the deep-seated problems of great significance.Corporation financial theory consider the goal of a corporation is to maximize the intrinsic value of the enterprise, financing behavior generally follow the Pecking Order principles, that in accordance with the retained earnings, debt financing, equity financing in order to maintain a reasonable capital structure. In China, due to the particular institutional context and economic environment, listed companies have widespread refinancing equity preference, traditional financing theory can not give this unique phenomenon a good explanation. Based on this phenomenon, this paper would like to explore and study the equity refinancing issue of listed companies through the financing market timing theory.1,main content and structureThis paper described the status and principal character of the equity refinancing in China and abroad, then compared and analyzed internal and external factors which implement listed companies'refinancing choice, and then focus on the seasoned equity offering market timing behavior, this paper used Logit model to test the phenomenon, give a explain for the listed companies'refinancing motives from the basic perspective, at last suggested policy proposals for the capital market regulator authorit.The first part is introduction, which present the issue, research approach and the whole structure of the paper.The second part reviewed three main corporation financing theories, that is off theory, the pecking order theory and the market timing theory.The third part analyzed the current corporation finance situation in China.The fourth part made a empirical test about the listed companies'refinancing market timing behavior from specific corporation level based on Logit model.The last part proposed recommendations on financing for regulatory authorities, focusing on analysis of prior restraints of existing policies and post supervision.2,main conclusionThis paper's empirical test shows listed companies refinancing market timing behavior was not notable enough to some extent, companies may not choose to further issue or rationed shares even when their share price was overrated. Our country's unique refinancing system imposed huge impact on the listed companies'refinancing behavior.