An Empirical Analysis Of The Gem Financing Preference Of Listed Companies In Our Country

Corporate finance is a forefront of contemporary theoretical issues of economics,but also the modern enterprise management an important issue. Listed company as aspecial group enterprise, is representative of the modern enterprise, a listed company’scapital structure is typical and representative. Based on different understanding of thetheory of capital structure and the differences in national economic systems, nationalenterprises in the capital structure of the composition and the choice of financinglarge differences, but the Western finance theory and practice generally believed thatthe order for the internal corporate finance financing over external financing, externalfinancing in the debt financing than equity financing. The capital structure of listedcompanies in China is characterized by light weight external financing internalfinancing, equity financing light heavy debt financing, showing a strong preferencefor equity financing. This theory is inconsistent with the phenomenon of foreignfinancing that the financing behavior of listed companies in China special.Shenzhen GEM on October30,2009officially open the board, the first batch of28companies that are listed at the same time, according to statistics, the number ofcompanies listed on the first batch of applications reached more than120, after justover a year of development, as December31,2010, the total number of GEM listedcompanies has more than140, the total amount of funding of up to117.1billion Yuan.Plates with different motherboards and small things, companies listed on GEM in sizeto less than the board and small and medium enterprise board and GEM pay moreattention to "high-tech, high-growth" and "new economy, new services, newagriculture, new materials, new energy and new business models,"the characteristics,location and board and small board is obviously different. Based on these differences,this paper is to study the GEM, GEM listed company’s capital structure and financingpreference study was to investigate the GEM listed company’s capital structure andfinancing preference characteristics, and then analyzes the impact of capital structureand financing GEM preferences factor.This paper summarizes results of previous studies based on the impact of China’s listed companies in financing preferences of the GEM classification factors, and inaccordance with the actual situation of the GEM, select a representative element, theuse of descriptive statistics, correlation and regression analysis of empirical method,using the SPSS statistical analysis software, GEM listed companies on China’sfinancing preference factors affecting an empirical study.The results show that: GEM-listed companies in China have preferred equityfinancing of the main factors are: solvency, profitability and size of the company,including current ratio and the main business profit margins and asset-liability ratiowas significantly negatively related to total assets the natural logarithm of assets andliabilities was significantly positively correlated.