Research On The Dynamic Relationship Between Growth Of Firms And Equity Refinancing From The Perspective Of Size Distribution

In recent years,China's listed companies using the capital market to refinance continue to grow,according to statistics IPO's scale has reached the amount of 150 billion 502 million yuan since 2015;in terms of the refinancing,raising a total of up to 984 billion 72 million yuan,far exceeding the IPO financing scale.whether the huge stock refinancing has played a role in promoting the performance of Listed Companies in our country,which type of listed companies can really benefit from the expansion and perfection of the capital market.This paper makes an empirical study on the current situation of the development of the capital market financing of Chinese manufacturing listed companies,and inspect the influence on the growth of the company meanwhile.First of all,through the analysis of descriptive statistics data of Listed Companies in the manufacturing industry,we study whether there is a significant positive correlation between the refinancing and the size,growth,profitability and other characteristics of the listed company.This paper chooses 2005-2015 China manufacturing listed companies' s indicators such as total operating income,financial leverage etc.as independent variables for studying,and acording to whether each Sample Firms during sample period conducts a refinancing activity,by setting the dummy variables,all samples will be divided into two general,namely to Refinance Companies and Non-refinance Companies.according to the panel data of 2005-2015 company level,through the ANOVA analysis,this paper found that firm's scales and other financial indicators of two Sample Firms during the period were significantly different in the perspective of mean.Total assets,operating income and other aspects of the refinancing listed companies is significantly higher than that of non-refinancing sample,moreover other financial indicators,such as ROA,on behalf of profitability,have the same differences in the two types of companies.Then,using panel data of the Chinese manufacturing listed companies,this paper researchs on the relationship between the possibility of refinancing of listed companies and company's size,profitability and other indicators and inspects whether there is a positive correlation.Discrete dependent variable Probit regression's results show that those listed companies in advantage of terms of size,long-term debt structure,growth,profitability are significantly more likely to obtain refinancing opportunities.Finally,in order to verify whether the sample group of refinancing listed companies get greater growth compared with those who did not get financing,and inspect whether the scale differences continue to exist after the release after a few years,we use the non-parametric kernel density estimation and quantile regression to study the those issues.We select two intersectional data of 2004 and 2015,by seting a total operating income of listed companies as a proxy for the size of the company,use the estimation method of kernel density estimation,to respectively estimate two samples(Finance Companies and Non-inance Companies)size distribution density curve in 2004 and 2015,so that we can visually compare two the overall expansion of the scale of two group.The results show that the size distribution density curve of the Finance Companies is more right than curve of Non-finance Companies in 2004,results also shows that the size of the company who use of capital market financing is greater than Non-finance Companies before the issue.After a period of development,size distribution density curves of two type of companies in 2015 significantly move to the right,proving that two types of companies have grown significantly,but the regression results from the figure shows,it is clear that the refinance Companies' s density curve has moved more distant compared to the Non-financing companies' s density curve toward to the right and Finance Companies has a faster growth than Non-finance Companies.In order to better measure the size of the deviation of distribution density curve,this paper uses quantile regression and difference in difference method to estimate and test wether the quantile of size density curve has a significant change,the estimation results show that quantile regression as a supplement to the kernel density estimation,has confirmed the kernel density estimation's results.Through empirical research on the latest financing data of manufacturing listed companies and corporate performance,we found that relatively few companies can repeat financing in the capital market,the successful case of the company's large-scale financing is less.In addition,in the past ten years,those listed companies without refinancing compared to the Companies using capital market were significantly different in aspect of growth.companies that refinance in the capital markets are usually larger,and grow more quickly.The difference of scale between Finance Companies and Non-finance Companies exist before refinancing activity and after the financing,this difference becomes more obvious.the scale of the company of using the financing over time is becoming more and more larger than the size of the company those did not use the financing in capital market.Density curve of Two types of Companies in terms of scale have shown a certain convergence.