Influencing Factors of Equity Financing Preference: Empirical Evidence on China´s Listed Companies

Author

Chen, Chunhua

Author_Institution

Editorial Office of the Journal, Shanghai Lixin Univ. of Commerce, Shanghai, China

Volume

3

fYear

2011

fDate

24-25 Sept. 2011

Firstpage

372

Lastpage

376

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;

fLanguage

English

Publisher

ieee

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

Type

conf

DOI

10.1109/ICM.2011.242

Filename

6113663