Corporate Finance Research

Author: Fan Qilong
Publisher:
Publish Date: 2006-04-01
Features: Capital is a decisive factor in a country's economic growth and development, as well as the driving force and sustained impetus for enterprises, the main economic entities, to carry out their business activities. The term "finance" is composed of "jin" (gold and silver, meaning monetary funds) and "rong" (meaning liquidity). The liquidity of monetary funds is succinctly expressed as "finance." Thus, financing has become synonymous with finance, and it is naturally the main focus of financial research. However, for a long time, corporate financing has not been an object of study in China's financial research. This book can be said to fill this gap. Using modern economic theory and methods, the book takes corporate financing and corporate value as its theme, systematically studying the relationship between corporate financing decisions, investment behavior, and corporate performance. The book is divided into five chapters: Chapter 1 is an introduction. Chapter 2, Financing Constraints on Corporate Investment, introduces financing factors into the corporate investment decision model, using the equity financing decisions of listed manufacturing companies in the Yangtze River Delta region as an example to empirically test the relationship and influence pathways between corporate financing and investment. Chapter 3, Capital Structure and Corporate Investment, primarily discusses the mechanisms of debt financing and equity financing on corporate investment, their roles in suppressing inefficient corporate investments, and derives the relationship between capital structure and corporate investment, followed by an empirical test of this relationship. Chapter 4, Equity Structure and Corporate Performance, focuses on the relationship between equity structure and corporate performance, conducting an in-depth exploration of whether an optimal equity structure exists under China's current incomplete capital market conditions. Chapter 5, Debt Financing and Corporate Performance, addresses the phenomenon of listed companies in China generally preferring equity financing while neglecting debt financing, especially bond financing, and focuses on the relationship between debt financing and corporate performance, proposing corresponding policy recommendations.