Research on Financing Behavior and Financing Structure of Chinese Listed Companies (Accounting Studies)

Author: Lu Zhengfei et al.
Publisher:
Publish Date: 2005-07-01
Features: This book employs various methods such as empirical analysis, questionnaire survey analysis, and comparative analysis to study the financing behavior and financing structure of Chinese listed companies from multiple perspectives. The main findings are: Chinese (A-share) listed companies exhibit a strong preference for equity financing; financing costs are not the only factor explaining companies' equity financing preference; enterprise capital size is favorable; higher return on equity and controlling shareholder ownership ratio increase the likelihood of companies choosing equity financing; "insider control" is a significant reason for the preference for equity financing; senior management, due to performance evaluation reasons, also prefer lower debt-to-asset ratios; enterprise size, profitability, growth potential, and collateral value significantly impact a company's debt-to-asset ratio; in addition to the stock beta coefficient, debt ratio, enterprise size, and B/M ratio are also important factors determining a company's equity financing costs; financing decisions of listed companies in different regions consider certain varying factors.