The Research On Preferred Shares-based On The Analysis Of China State Construction Engineering

Preferred stock equity financing as a is paid more and more attention by China State Construction Engineering,this with compatible documents in the dual nature of the bond and equity not only to meet the corporate demand for funds,more optimized enriches the enterprise capital structure.Based on China State Construction Engineering as the research object,this paper studies the companies choose preferred stock financing background,purpose,combined with the two alternatives to debt financing and equity financing analysis of the causes of companies using preferred stock financing.Then the combination of quantitative and qualitative,event study method and other methods,analyzes the China State Construction Engineering to issue preferred shares to the financial impact of the company and market influence,finally respectively to preferred stock issuers and regulators put forward the corresponding Suggestions.Through research we found China State Construction Engineering with the method of preferred stock financing is a kind of ideal,the rate of assets and liabilities of China State Construction Engineering company level is high,the debt financing can lead to companies asset-liability ratio over state-owned assets supervision and administration commission of the red line,and use common stock financing will affect China State Construction Engineering big shareholders absolute control.From the perspective of the company uses the preferred stock financing can effectively reduce the rate of assets and liabilities,for the China State Construction Engineering to provide a stable,sustainable funding sources,alleviate the pressure of the enterprise funds,and strategic transformation,expand their business to provide power for the company.Market point of view,China State Construction Engineering preferred shares announcement can lead to positive reaction of the market,suggests that investors expected value for companies to issue preferred stock in the future.With the continuous development of China's capital market,preferred stock of relevant system and regulations,choose preferred stock financing of enterprises will be more and more,in the sample data after sufficient preferred research will be more perfect.This article uses the case analysis research method,the research has certain subjectivity.In the future after preferred stock financing is more detailed and accurate data,can carry out large-scale empirical research.This paper hopes that the study of China State Construction Engineering issue preferred stock financing case,cause the attention of other domestic enterprises with financing intention,help them to find appropriate financing strategy.