Research of Financing Preference and Influential Factors of Pharmaceutical Listed Companies in China Based on Analytic Hierarchy Process

OBJECTIVE:To study the financing preference and influential factors of pharmaceutical listed companies in China.METHODS:The financing data of totally 52 pharmaceutical listed companies in China from 2008 to 2013 were collected as samples and comparatively analyzed in aspects of commercial credit financing rate,bank credit financing rate,retained earnings financing rate,fiscal financing rate and equity financing rate,etc.The literature analysis and analytic hierarchy process were adopted to determine the influential factors and weighting of financing preference in pharmaceutical listed companies.RESULTS:The financing sources of pharmaceutical listed companies in China from 2008 to 2013 mainly focused on equity financing(39.50%),followed by commercial credit financing(15.94%),retained earnings financing(15.31%),bank credit financing(11.38%)and fiscal financing(2.09%).At the macro level,the financing preference was mainly influenced by the correlation of company main body,the external macro environment and financing characteristics,with the weighting of 0.472,0.342 and 0.186,respectively;at the micro level,the financing preference was mainly influenced by the company's profit ability,information symmetry,and the cost of financing,with the weighting of 0.215,0.345 and 0.267,respectively.CONCLUSIONS:The pharmaceutical listed companies in China have great financing preference.It is suggested to further improve the financing efficiency in aspects of improving their credit rate,maintaining reasonable debt levels and reducing the cost of financing,etc.