Why do listed companies in China have incentive preference of the equity finance?

Wang, dongxiao (2009) Why do listed companies in China have incentive preference of the equity finance? [Dissertation (University of Nottingham only)] (Unpublished)

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Abstract

The choice of company capital structure can do great influence to the efficiency of the value and allocation of resources. In general, the finance methods comprise of internal finance and external finance, based on whether the funds come from the inside or outside of the corporation.

Different market economy system and financial system determines different methods of financing and the structure of financing. This paper through the comparisons of capital structure of similar companies in different countries exposes the close relations between equity finance and Chinese listed companies.

This paper uses tables and figures to describe the finance preference of listed companies in China. Through the brief recall and description of principal of financing preference, it shows that listed companies in China strong incentive on equity finance. Therefore, the author takes a look on the reasons of why these companies prefer equity finance to debt. Finally, suggestions to optimized capital structure of listed companies in China and raising the level of the efficiency of resources allocation are put forward.

Item Type: Dissertation (University of Nottingham only)
Depositing User: EP, Services
Date Deposited: 03 Feb 2010 13:53
Last Modified: 21 Nov 2016 18:10
URI: http://eprints.nottingham.ac.uk/id/eprint/23353

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