Empirical Research On Financing Preference And Influencing Factors Of Chinese Listed Company

Financing decisions is an important part of corporate financial management. The way of corporate financing will influence not only the long-term development of enterprises but also the healthy development of the capital market. Pecking order theory is a material theory of financing decisions. It believes that the right order of corporate financing is internal financing, debt financing and equity finaning. Western finance theory and practice are generally proved pecking order theory. Gao Xiaohong (2000), Shaoan Huang and Zhang Gang (2001) and other scholars through empirical research found:Chinese listed companies prefer equity financing and the main reason is that cost of equity capital is lower than cost of debt capital due to fewer or none dividends. Since2001Chinese government has issued a series of documents related to dividend distribution in order to promote Chinese listed companies to distribute dividends. Document which issued in2008has made two adjustments. Firstly, the dividend policy is only limited to cash dividends. Secondly, improving the policy inproportion to30%and the previous is20%. If measures of cash dividends issued by Chinese relevant departments can promote the distribution of cash dividends is questionable. Improving the amount of cash dividends can lead to higher cost of equity financing. Whether the phenomenon of equity financing preference of listed companies can be improved? This article select2009-2013relevant data analysis change of cash dividends and financing preference of listed companies. There are two changes about capital market financing environment in2007. The first one is equity division reform has been basically completed. The second one is implement of new accountiong standards. This paper study the influcing factors of financing preference in order to improve the financing behavior of listed companies, optimize the capital structure of listed companies to improve corporate value and improve the efficiency of financing in Chinese securities market in general. Below is the main contents of each chapter.The first part of this paper introduces research background, research significance and reviews the related literature of the financing preference and influencing factors of listed companies. After, it introduces the research framework, research methods and innovation points of this paper.The second part introduces four financing preference related theory:perking order theory, signaling theory, agency cost theory and balance theory.The third part briefly introduces financing ways of listed companies and theory analysis of listed companies financing preference influencing factors. In order to lay the foundation of later empirical study.The fourth part including sample selection, data sources, variable design, research hypothesis and model assumes.In the fifth part, author has carried on the empirical analysis. According to the descriptive statistics of sample company2009-2012’data, the number of companies which distribute cash divide and amount of dividend distribution are on the rise. With the improvement of cash dividend distribution, equity financing costs rise. Whether Chinese listed companies still prefer to equity financing is questionable. This paper empirical researches financing preference of sample companies in2003on the basis of2012’financial indicators using Ordered-Logistic model. In order to test the financing preference, influencing factors and influencing degree of Chinese listed companies under the new environment.In the sixth part, this paper concludes research results, limitations of this paper and prospect of following research. The empirical analysis shows that sample companies financing order is internal financing, short-term loan financing, right issue financing, bonds issue financing, long-term loans and equity financing. After adding up each category, the financing order is internal financing, debt financing and equity financing. The results show that our country has already does not exist the phenomenon of equity financing preference and following perking order theory. In addition, empirical research find that the operating ability factor, the company size factor and non-debt tax shields factor are positively correlated to financing preference; capital structure factors, debt paying ability factor and profit ability factor are negatively correlated to financing preference; Capital accumulation rate factors, growth factors and ownership structure factors have no significant impact of listed companies financing decision.The main research method of this paper is literature research and empirical study. In addition to, the paper use qualitative analysis and quantitative analysis on the basis of Ordered logistic model using SPSS19.0to do empirical research. This paper has four innovation points. Firstly, it starts from reasons of equity financing preference of China listed company for the first time to analysis whether still exists the phenomenon of equity financing preference in our country after improvement of cash dividend distribution increases the cost of equity financing. Secondly, it adequate considers that goverment has intervened financing of real estate industry and medium-sized and small enterprises. Thirdly, it uses factor analysis to deal with explaining variable when doing empirical analysis in order to insure independent explanatory variables. Fourly, it uses Ordered-Logistic model because explained variable is ordinal category data.