Abstract
Since its establishment, China's capital market has made great progress and has also promoted the formation of various financing channels. However, in recent years, the current situation of China's capital market, compared with the western developed country, China's listed companies gradually form the phenomenon of equity financing preference, which is not conducive to the basic function of China's securities market play and healthy development. Therefore, this paper makes a detailed study of the financing preference characteristics such as equity financing, which is significantly higher than debt financing, Short-term debt financing is higher than Long-term debt financing, and insufficient endo source financing.
Highlights
This paper mainly discusses the internal influence factors and external influence factors of listed companies in China
According to the data of this year's financing structure of Listed Companies in China from 2012 to 2016, the proportion of external financing is more than 80%, while the proportion of endo source financing is only 20%, and the huge difference between domestic and foreign source financing shows that China's listed companies have strong foreign financing preferences
The fundamental reason for listed companies' preference for equity financing is the problem of corporate governance structure, the over-preference of listed companies for equity financing should start with the continuous improvement of the corporate governance structure.[3]
Summary
This paper mainly discusses the internal influence factors and external influence factors of listed companies in China. Internal factors include the size of the company, the company's capital structure, the company's profitability, and solvency and Non-debt tax shield. External influences include external policies and external systems
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