Abstract:
In the process of financial activity in enterprises, financing has the closest relationship with enterprises development. It not only has an unsubstitutive driving power for enterprises development, but also restricts their development to some extent. As to the method of financing, there are two main categories: internal financing and external financing. The internal financing is the process that enterprises use their own capital and the accumulated capital in their operating course to add value to their registered capital, while the external financing is that enterprises increase their registered capital by external capital. Generally, the external financing is divided into two parts: direct financing and indirect financing. The western finance theories hold that due to the exist of agency cost and bankrupt risk, if enterprises want to get more financing, they should choose the accumulated capital from their own profit firstly, which is as called internal financing. And then they can choose indirect financing, in which loan is the main method. That also is debt financing. Lastly, enterprises should consider the method of issuing stocks. At the same time, the current practices of financing in advanced countries enterprises are that they consider own capital financing firstly, then debt financing and issuing financing lastly in their financing process. In the contrast, the listed companies in China have a totally reverse in the order of financing choice. It behaves an obvious converse choosing, which shows an extreme preference for stocks issuing financing and averseness for debt financing. Why the financing tendency happens in listed companies in our country? What are the influences for enterprises by the tendency? How to deal with it? This paper answers all above questions singly. Firstly, the paper describes the current status and influence of preferring to stocks issuing in our country listed companies and makes a conclusion for that tendency. There are several reasons for current status, including the low cost and little risk in stocks issuing, absence of effective adjustment in listed companies’ share structure and the other external factors. Furthermore, the paper puts forward to some relevant opinions and suggestions in company management, system innovation, stock market development and consummation and building of diverse financing methods etc. It also hopes a harmonious development between stocks issuing financing and debt financing.
Key words: listed company, stocks issuing financing, debt financing, preference
人工翻译的，我也是学金融的，所以翻译起来有亲切感。