Capital is very important to company to achieve steady growth, so how tofinance and the way in which the enterprise financing has become a central topic.With the development of China’s capital market, company can choose Rights offering,Seasoned equity offering or Convertible bond to finance except IPO Financing. Inrecent years, compared with IPO, refinancing has becoming more popular in capitalmarket by listing corporation. In general, after IPO, the enterprise will be faced upwith capital bottleneck after a period of time. To maintain and promote the rapiddevelopment of enterprises, it is inevitable to resolve the bottleneck by refinancing.However, in the process of the refinancing implementation, listing corporation will befaced up with cost, performance and risk considerations. Once the company cannotcorrectly measure the financing cost and performance, accurately estimate refinancingrisk, the performance of enterprises will be significantly influenced. Therefore, therefinancing risk management has become the theme of the paper.Under this background, based on the classical financial theory and the definitionof basic concept, the p per de ply analyze and elaborate listed companies’ refinancingrisk in China from a different point of view. First of all, based on the description ofthe process of refinancing market’s development, the paper analyze Chinese listingcorporation’ financing behavior feature and its causes, paving the way for thediscovery and understanding of China’s listed companies’ refinancing risk. Secondly,through the analysis of refinancing direct cost, indirect cost and other cost, torecognize financing risks from the angle of cost. Finally, make full use of the dataabout Rights offering, Seasoned equity offering and Convertible bond to makeempirical analysis,found that the refinancing will increase the financial risk of thecompany in the short term and influence the company’s long-term performance in thelong term. Also, to a certain extent, refinancing can help to avoid or transfer therisk.Combined with the main part of the theoretical analysis and statistical analysis,the paper give some policy recommendations to listing corporation’s refinancing riskmanagement from the micro, meso, and macro level. On the microscopic foundation,in order to fully find refinancing risks before refinance, building listed companies’refinancing evaluation system to achieve the pre-control. At the meso, respectivelytreat three kinds of refinancing methods of specific risks to achieve the concrete analysis of concrete problems. And at the macro, reconstruct China’s refinancingmarket system and provide institutional guarantee for the risk management of listingcorporation. |