2006•Fisheries Economy ResearchRequires access
Financing Structure of Chinese Listed Companies and Countermeasures of Optimization
Li Wei
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Abstract
The theory of modern capital structure reveals that the best sequence of corporate financing should be inside financing, credit financing and equity financing. However, an obvious discrepancy is that Chinese listed companies prefer equity financing whereas western companies prefer others in their financing behavior. This article explained the causes of current situation, and put forward some suggestions owing to the inefficiency caused by these problems.