An Analysis of the Equity Financing Methods of China's Listed Companies

There exists an obvious preference to the equity financing in the financing methods of listed companies in China,which is disadvantageous to the healthy development of enterprise capital structure.Applying the pecking order theory,this paper compares the effects of different financing methods from the aspects of enterprise and market,and puts forward the following suggestions: adjusting the ownership structure of the listed companies;elevating the threshold of rational shares and increasing issues;stifling the excessive equity financing of listed companies.