Title :
Influencing Factors of Equity Financing Preference: Empirical Evidence on China´s Listed Companies
Author_Institution :
Editorial Office of the Journal, Shanghai Lixin Univ. of Commerce, Shanghai, China
Abstract :
The paper samples from A-share companies listed in Shanghai Stock Exchange and Shenzhen Stock Exchange, and uses the linear probability model to test the factors causing equity financing preference in China´s listed companies. The empirical results show that the capital structure and corporate ownership structure do not have a consistent explanatory power in the financing behavior of China´s listed companies, and that the refinancing eligibility and the firm size play a significant role in financing decisions. It is concluded that the purpose of equity financing is to meet the demand of liquid capitals or investment funds.
Keywords :
financial management; investment; organisational aspects; stock markets; A-share companies; China´s listed companies; Shanghai stock exchange; Shenzhen stock exchange; equity financing preference; financing behavior; financing decisions; investment funds; liquid capitals; Analytical models; Companies; Finance; Industries; Investments; Stock markets; China´s listed companies; capital structure; equity financing preference; influencing factors; ownership structure;
Conference_Titel :
Information Technology, Computer Engineering and Management Sciences (ICM), 2011 International Conference on
Conference_Location :
Nanjing, Jiangsu
Print_ISBN :
978-1-4577-1419-1
DOI :
10.1109/ICM.2011.242
