1、 毕 业 设 计（论 文） 外 文 参 考 资 料 及 译 文 译文题目： 中国上市公司偏好股权融资：非制度因素 学生姓名： 学 号： 专 业： 会计学 所在学院： 指导教师： 职 称： 副教授 2013 年 12 月 20 日 Chinese Listed Companies Preference to Equity Fund: Non-Systematic Factors Abstract This article concentrates on the listed companies financing activities in China, analyses the reasons
2、 that why the listed companies prefer to equity fund from the aspect of non-systematic factors by using western financing theories, such as financing cost, types and qualities of the enterprises assets, profitability, industry factors, shareholding structure factors, level of financial management an
3、d society culture, and concludes that the preference to equity fund is a reasonable choice to the listed companies according to Chinese financing environment. At last, there are some concise suggestions be given to rectify the companies preference to equity fund. Keywords: Equity fund, Non-systemati
4、c factors, financial cost 1. Introduction The listed companies in China prefer to equity fund, According to the statistic data showed in , the amount of the listed companies finance in capital market account to 95.87 billions in 1997, among which equity fund take the proportion of 72.5%, and the pro
5、portion is 72.6% in 1998 and 72.3% in 1999, on the other hand, the proportion of debt fund to total fund is respective 17.8%, 24.9% and 25.1% in those three years. The proportion of equity fund to total fund is lower in the developed capital market than that in China. Take US for example, when Ameri
6、can enterprises need to fund in the capital market, they prefer to debt fund than equity fund. The statistic data shows that, from 1970 to 1985, the American enterprises debt fund financed occupied the 91.7% proportion of outside financing, more than equity fund. Yan Dawu etc. found that, approximat
7、ely 3/4 of the listed companies preferred to equity fund in China. Many researchers agree upon that the listed companies outside financing following this order: first one is equity fund, second one is convertible bond, third one is short-term liabilities, last one is long-term liabilities. Many rese
8、archers usually analyze our national listed companies preference to equity fund with the systematic factors arising in the reform of our national economy. They thought that it just because of those systematic facts that made the listed companies financial activities betray to western classical finan
9、cing theory. For example, the “picking order” theory claims that when enterprise need fund, they should turn to inside fund (depreciation and retained earnings) first, and then debt fund, and the last choice is equity fund. In this article, the author thinks that it is because of the specific financ
10、ial environment that activates the enterprises such preference, and try to interpret the reasons of that preference to equity fund by combination of non-systematic factors and western financial theories. 2. Financings cost of the listed company and preference to equity fund According to western fina
11、ncing the theories, capital cost of equity fund is more than capital cost of debt fund, thus the enterprise should choose debt fund first, then is the turn to equity fund when it fund outside. We should understand that this conception of “capital cost” is taken into account by investors, it is somew
12、hat opportunity cost of the investors, can also be called expected returns. It contains of risk-free rate of returns and risk rate of returns arising from the investors risk investment. It is different with financing cost in essence. Financing cost is the cost arising from enterprises financing acti
13、vities and using fund, we can call it fund cost. If capital market is efficient, capital cost should equal to fund cost, that is to say, what investors gain in capital market should equal to what fund raisers pay, or the transfer of fund is inevitable. But in an inefficient capital market, the price
14、 of stock will be different from its value because of investors action of speculation； they only chase capital gain and dont want to hold the stocks in a long time and receive dividends. Thus the listed companies can gain fund with its fund cost being lower than capital cost. But in our national cap
15、ital market, capital cost of equity fund is very low； it is because of the following factors: first, the high P/E Ratio (Price Earning Ratio) of new issued shares. According to calculation, average P/E Ratio of Chinese listed companies shares is between 30 and 40, it also is maintained at 20 althoug
16、h drops somewhat recently. But the normal P/E Ratio should be under 20 according to experience. We can observe the P/E was only 13.2 from 1874 to 1988 in US, and only 10 in Hong Kong. High P/E Ratio means high share issue price, then the capital cost of equity fund drops even given the same level of
17、 dividend. Second, low dividend policy in the listed companies, capital cost of equity fund decided by dividend pay-out ratio and price of per share. In China, many listed companies pay little or even no dividends to their shareholders. According to statistic data, there were 488 listed companies pa
18、id no dividend to their shareholders in 1998, 58.44 percents of all listed companies, there were 590, 59.83 percents in 1999, even 2000 in which China Securities Regulatory Commission issue new files to rule dividend policy of companies, there were only 699 companies which pay dividends, 18.47 perce
19、nts more than that in 1999, but dividend payout ratio deduce 22%. Thus capital cost of equity is very low. Third, there is no rigidity on equity fund, if the listed companies choose equity fund, they can use the fund forever and has no obligation to return this fund. Most of listed companies are con
20、trolled by Government in China, taking financing risk into account, the major stockholders prefers to equity fund. The management also prefer equity fund because its lower fund cost and neednt to be paid off, then their position will be more stable than financing in equity fund. We can conclude from
21、 the above analysis that cost of equity fund is lower than cost of debt fund in Chinese listed companies and the listed companies prefer to such low-cost fund. 3. Types and qualities of assets in listed companies and preference to equity fund Static Trade-off Theory tells us, the value of enterprise
22、 with financial leverage is decided by the value of self-owned capital； value arising from tax benefit, cost of financial embarrassment and agency cost. Cost of financial embarrassment and agency cost are negative correlative to the types and qualities of companies assets, if the enterprise has more
23、 intangible assets, more assets with lower quality, it will has lower liquidity and its assets have lower mortgage value. When this kind of enterprise faces to great financial risk, it will have no way to solve its questions by selling its assets. Furthermore, because care for the ability of turning into cash of the mortgage assets, the creditors will high the level of rate and lay additional items in financial
