Research On The Motivation,efficiency And Influencing Factors Of Equity Financing Of Photovoltaic Enterprises

Energy has always been the driving force for the advancement and development of human society,but fossil energy is non-renewable and will release a lot of harmful gases,so countries have focused on the development and use of new energy.In the new energy industry,photovoltaic power generation has been vigorously promoted and supported by countries around the world due to its unique advantages such as wide geographical scope,many application scenarios,clean and pollution-free.However,it is a capital-intensive industry,and there is a huge demand for capital when investing in expansion.In the face of huge capital demand,there are various financing methods for photovoltaics,including: policy subsidies,bank loans,capital market financing,etc.Regarding capital market financing,the "14th Five-Year Plan" and the 2035 Vision Outline mentioned "to increase the proportion of direct financing,especially equity financing",so the prospects for equity financing in the photovoltaic industry are very optimistic.This paper selects the three equity financings of LONGi,a leading enterprise in the photovoltaic industry,as a research case,and conducts a detailed analysis of the motivation,efficiency and influencing factors of the company’s equity financing.First,this paper analyzes the motivation of LONGi’s equity financing.The study found that,considering the characteristics of the industry,the reasons for LONGi’s equity financing are:(1)lack of working capital;(2)limited debt financing;(3)equity financing does not require repayment of principal and interest,which is conducive to alleviating the problems of growing enterprises financial pressure;(4)the risk of technological innovation in the photovoltaic industry is relatively high,which is more suitable for equity funds..Secondly,this paper analyzes the efficiency of equity financing through financial data method and DEA model.The efficiency of equity financing includes capital integration and utilization efficiency at the micro level and allocation efficiency at the macro level.The equity financing efficiency studied in this paper refers to the use efficiency of funds.In terms of financial data analysis,combined with previous research by scholars and the unique attributes of the photovoltaic industry,this paper analyzes the changes in total operating income,industrial chain status,operating cash flow and profitability before and after equity financing of LONGi to analyze the funds after equity financing usage efficiency.Regarding the DEA model,based on the research of previous scholars,the reference object of the model is other companies in the industry.The input variables of the model are the ratio of tradable shares and the proportion of the sum of share capital and capital reserve to total assets,and the output variables are the year-on-year growth of total revenue and the weighted average return on equity.The study found that after the first equity financing of LONGi,although it performed well in terms of total operating income growth and profitability,it did not perform well in terms of industrial chain status and operating cash flow,which indicates that the efficiency of the first equity financing did not improve.Not very high.After the last two equity financings,the company performed well in terms of total operating income,profitability,industrial chain status and operating cash flow,which indicated that the latter two equity financings were more efficient.The above conclusions are also verified from the empirical results of the DEA model.Finally,this paper analyzes the influencing factors of equity financing efficiency through financial data method and Tobit model.Combining the research of previous scholars and the unique attributes of the photovoltaic industry,the influencing factors selected in this paper are: total assets representing company scale,total asset turnover rate representing operating capacity,equity concentration representing governance structure,asset-liability ratio representing capital structure,the ratio of R&D investment to operating income representing technological innovation and component capacity utilization representing industry supply and demand.The dependent variable of the Tobit model used in this paper is the DEA score,and the independent variables are the influencing factors.The study finds that company size,total asset turnover,equity concentration and technological innovation all have positive effects on equity financing efficiency.The coefficients of the above factors are significantly positive in the Tobit model regression results,which are in line with the conclusions of the financial data analysis part.Regarding the asset-liability ratio,its impact on the efficiency of equity financing is not one-way.It needs to be maintained at a reasonable level to have a positive impact on the efficiency of equity financing.The optimal assetliability ratio is related to the industry cycle and corporate characteristics.Regarding industry supply and demand,from the perspective of financial data,the higher the capacity utilization rate,the higher the efficiency of LONGi’s equity financing,but the empirical results are not significant.This may be because the DEA model calculates the relative efficiency of the company’s equity financing efficiency,and the reference object is each sample company in the industry,so it is not significantly affected by the overall supply and demand of the industry.