Company financing structure and financing instruments

Author: Li Chaoxia
Publisher:
Publish Date: 2004-01-01
Features: Modern capital structure indicates that a company's financing structure indeed affects its value. In other words, how to "divide the pie" is related to the size of the pie. A firm's financing decisions, which include financing behavior and the selection of financing instruments, not only reflect the firm's own financial condition and the investment opportunities it faces but also reflect the internal stakeholders' considerations regarding control over the company, as well as the firm's product market and financial market conditions. This book employs a research methodology that combines empirical and normative analysis to study the financing behavior and financing instrument choices of Chinese enterprises. It applies the latest international research findings in corporate finance theory to conduct an in-depth analysis of the major factors influencing the capital structure of Chinese companies, the institutional background and micro-level factors of corporate financing in China. Additionally, it examines the international developments in financing instruments, the selection of financing instruments and methods by Chinese companies, and the financing arrangements in corporate mergers and reorganizations, all with case studies. This book not only provides significant inspiration for the development of financing theory for Chinese companies but also offers strong guidance for domestic corporate financing practices.