An Empirical Study On Capital Structure And Financing Behavior Of Chinese Private Listed Companies

Capital structure is one of core issues in corporate finance theory. The choice of capital structure decides on the cost of capital and further more has an important influence on enterprise’s market value.Since the MM theory was pointed out in 1958, a good many scholars have made a profound and deep research on this subject one by one. From the existed literature, Domestic scholars have empirically study the capital structure of China listed enterprises already. But the literature based on the research object of private listed companies is not abundant. Private listed companies have its special features, such as the financing difficulty, the problem of corporate governance and unequal competition status, so it’s necessary to study the capital structure of private listed enterprises. It contributes to improve its capital structure management and promote its healthy development and further more, provide a reference on better finance loans for private listed companies.According to CSMAR’s database of private listed companies, this paper has analyzed the capital structure and its influence factors and financing behavior of private listed enterprises in detail. Firstly, it did descriptive statistics on capital structure, financing method. Secondly, it made a regression analysis on capital structure and its influence factors, applying a partial adjustment model based on panel data. Finally, on the basis of refinancing, this paper made a research on the condition of private listed companies’equity financing.The main conclusions are as follows:First, the private listed companies’ asset-liability ratios of different industries have significant difference, but the distribution is not universal. Second, the capital structure’s discrepancy of different areas is not significant. Third, external financing is the main source of development fund, namely, bank loan. The proportion of equity financing is the same low as the bonds. Short-term borrowing is the main section of bank loan. The conclusion reflects the current condition that private listed companies seriously depend on bank’s finance service and the development of bond market lagged behind stock market. Fourth, from the beginning of 2005, Add-issuance of shares becomes the absolute means of equity financing. However, this paper didn’t find that private listed companies prefer to equity financing. Fifth, regression analysis shows that the leverage of private listed companies has a positive relationship with company size, asset-backed value, real tax and the degree of equity centralization; has a negative relationship with company growth, profitability and asset liquidity. In addition, partial adjustment model demonstrates the private listed companies’ capital structure possesses dynamic adjustment mechanism.Based on these conclusions, this paper pointed out several suggestions. First, to encourage more eligible private companies to list for enlarging financing channel; Second, to accelerate the development of bond market; Third, to establish special financial institutions providing loans for private companies.