| Financing structure theory is always one of the most important issues in finance. Since MM theory was first proposed by Modigliani and Miller, in order to resolve disputes under different financing structure economic and institutional environment, agency theory, asymmetric information theory and incomplete contracting theory were proposed. Although parts of the theory have been proven in the western capital markets, but the phenomenon of china was opposite to these classical theories.Special institutional and economic environment exist in China’s capital market. For example, the state-owned holding serious, government’s intervention in financial institutions, state-owned financing constraints, the low proportion of institutional investor, the poor investor protection and corporate governance system. Coupled with the multilevel nature of China’s capital market, there is a huge difference between the motherboard market and GEM market. At this time, is foreign classical theory persuasive on the Shenzhen GEM? What kinds of factors need to be weight when managers make decisions in order to maximize enterprise value? What’s the most effective and direct measure can be taken for progress? These kinds of questions have to be discussed and tested in detail.Review the relevant literature, the theoretical results of the financing structure are quite fruitful in the western capital market, and these theories have considerable explanatory power. Because of the differences exist between the western capital market and China’s capital market, the results are different. Summarize the research results at home and abroad, there is some empty place need to be filled. First, static regression models are used by the majority of scholars to estimate the cross-sectional data. They didn’t take full account of the impact of the timing effects of the study. Therefore, it’s better to use dynamic models to analyze panel data. Second, most scholars will be simply defined the financing structure as the capital structure. They are focus on the ratio of debt and equity issues which resulted in the lack of corporate governance and accounting conservatism. So the conclusions are inaccurate. Third, the existing research literature on the financing preference mostly limited to objective description, and there is a big difference in the analysis of the specific reasons. This is not conducive for the listed companies to solve practical problems, and it will be result to inefficient and disorder.Based on this, we take GEM listed companies as samples, and analyze the factors affecting the enterprise value from the perspective of the cost of financing, and take full account of corporate governance, finance and accounting conservatism preferences and other factors, to explore the largest enterprise value for managers.By regression analysis, I propose the following conclusions:1、Accounting conservatism can reduce financing costs and improve financing efficiency, but deteriorate the extent of the deterioration of the lack of investment, resulting in lower overall enterprise value; 2、The level of corporate governance of listed companies, especially disclosure of internal control reports, can enhance corporate value, and the economic consequences usually lags; 3、The GEM Listing companies still have a preference for equity financing, but in the long run, we believe that it is not conducive to their own and the development of the capital markets; 4、Listed companies can control the cost of financing by reducing business risks and the risk of bankruptcy. But not every factor can achieve the purpose of improving corporate value. This paper argues that the most effective way is to strengthen the core competitiveness of enterprises, improve operational efficiency, and expand the operating cash flow; 5、The financial life cycle theory is not applicable in the GEM; 6、Economies of scale at this stage was not significant. Enhance the overall value of the enterprise should be to increase R&D spending and encourage technological innovation. |
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