Theory of Outside Financing Selection and Its Empirical Analysis from the Perspective of Controlling Power

By constructing a unified mathematical model,this paper carries out a comparative analysis.The results show that both the debt financing under the conditions of different duration and the equity financing under the conditions of different objects have their own characteristics.Meanwhile,the analysis of the list of the listed companies in 2007 in the order of financing preference also proves that the controlling power of the listed companies plays a decisive role in the selection of financing method,while the profitability of the company has a significant effect on the selection of financing method.