The comparison of financing behavior of listed company between china and foreign countries and reason analysis

From the Pecking Order Hypothesis, the partiality of enterprise should see the internal fund as the main capital source for investing. Second is the debt, new stock financing is the last one. However, the financing practice of China´s listed company just is in opposition to the theory, that is to say, the companies in China depend on the external financing even more than that of the other countries, and furthermore, the companies mainly rely on stock financing instead of the debt financing. In addition, the financing scale is relatively small, the premium of new stock issue is low, and the marketization degree of pricing method of new stock is also low, which show that the general financing structure and exterior financing structure are serious unbalance. Therefore, the administrative department and company should probe into the financing behavior of listed company and their reasons and provide decision-making ideas for the healthy development of China´s capital market.