Game theory analysis on financing decision in business

The financing decision system in business is studied. The system is dependent on game theory with the asymmetry of information. After the building of models on the system with logical analysis, the consequence is drawn that the businesses with high profitability and the ones with low profitability form in game equilibrium in the by process of bond financing, while in the by process of stock financing the businesses with low profitability drive the ones with high profitability out of the game, which is called lemon effect. In the end, bond financing as a dominant measure in business financing is pointed out.