China's listed companies financing policy studies :2001-2009

[Abstract] financing policy is an important part of financial policy, is a listed company an important basis for financial decision-making present, China's listed companies adopted the kind of financing policy, adopted a kind of financing behavior, forming a kind of financing structure, by financial data of listed companies to understand the Information the study is a very important way from the Research results, listed companies in China in recent years, the financing policy is undergoing some changes.

[Keywords] financial statements, financing structures, financing, financing policy

1 Introduction

Modern financial management of Research is divided into four levels: financial theory, rules of financial management, financial policy Research and financial behavior. Financing policy is an important part of financial policy, but also the guidance of listed companies and prerequisite for financing activities in 2001, the American scholar Graham and Harvey [1] through the analysis of survey of U.S. companies, including financial policy, including financial policies, and draw some important conclusions that some are consistent with the theory, some theoretical divergence.

At present, China's many companies do not open, clear financial policy, naturally there is no clear financial policy, financing policy for listed companies, academic Research and more from the finance act, the perspective of capital structure.

From the perspective of behavioral finance Research are: Yan at five, Geng Jianxin, Liu Wenpeng (2001 [2] by studying the behavior of listed companies to analyze the placement financing behavior of listed companies, Lu Zheng-fei, high strength (2003 [3] to in the Shenzhen Stock Exchange 500 publicly traded company secretary to the Board issuing the questionnaire method, on the financing behavior of listed companies in China have been studied, Yiming Hu, Zeng Qingsheng (2001 [4] <<Finance and Accounting "Magazine" Money Place "column sample of companies, conduct research, including financing, including corporate financial management practices.

In addition, there are many scholars around the capital structure of the financing behavior of listed companies, and focuses on the financing preference, research in this area include: Huang Shao, Chang Gang (2001 [5] for a description of the financing structure of listed companies identified China's listed company there is a strong preference for equity financing, Xing, Wei Feng et al (2004 [6] Myers Pecking Order in the modified model based on empirical tests using a large sample of listed companies in Shanghai and Shenzhen in China's financial situation, Liu Lijun (2005 [7] on the 1992-2003 financing preference of listed companies in China conducted an empirical study by a number of aspects of the empirical analysis of China's scholars believe that China's listed companies, there is indeed the issue of financing preference.

So far, the domestic policies of listed corporate finance theory and empirical research still need further development. Taking into account the financing policy is relatively stable, this paper attempts by mechanical equipment and meters, wholesale and retail trade, electricity, gas and water production and supply of three Typical indicators of dynamic industry statistical analysis, a more comprehensive and objective understanding of China's listed since 2001, the company's financing structure, and then explore the behavior of actual fiscal and financing policies adopted in the current situation and its evolution.


2 study design and sample data

2.1 Study Design
Through the balance sheet, cash flow statement of the financial data for research on targeted, representative financial ratios analysis, research 2001-2009, the financing structure of China's listed companies, understand their financing activities, and then explore its financing decisions , and financing policies. research framework in the "pecking order" theory [8] established under the inspiration, shown in Figure 1.

2.2 Index Selection
Analysis for different objects were selected with a certain representation of the analysis of indicators, specific indicators and their formulas as shown in Table 1.

2.3 Sample selection and data sources
In 2001-2009 for the study window, according to the Commission's industry classification, according to Wind database March 22, 2010 to provide a list of companies to select December 31, 2009 before the Shanghai and Shenzhen A shares of machinery and equipment instrumentation industry, wholesale and retail trade industry, electricity, gas and water production and supply of listed companies for the study sample, excluding the following sample: ① public financial reporting the number of years less than 9 years of the company, ② ST class company, ③ main business place significant changes in the company, ④ significant changes in corporate strategy of companies, ⑤ data is missing or abnormal major companies ①, ⑥ audit opinion is not issued, objections of the company.

Ultimately, respectively, from 197 meters machinery and equipment manufacturing companies, 90 companies and wholesale and retail trade, 64 electricity, gas and water production and supply company to get an effective sample of 111, 57 and 36, a total of 204 samples.

In addition, taking into account the consistency and comparability of data, using financial data are taken in the unadjusted consolidated financial statements.

2.4 Analysis
Application of Excel software to calculate the three sectors of the representative from the 2001-2009 financial indicators, and the three sectors of the data were descriptive statistical analysis.


3 Empirical Results and Analysis

3.1 Analysis of internal financing
The company's basic financing channels, including internal financing and external financing Internal financing is to rely on internally generated cash flow to meet production and management company, Investment of new capital requirements, internal financing includes two basic ways: First, the after-tax retained profits, the second is the formation of capital depreciation due to internal financing is the main form of retained profits after tax and depreciation funds are not involved in the formation of complex management problems [9] Thus, the main analysis of the internal financing of retained earnings.

Using the balance sheet data, and use the stock index - the sum of earned surplus and retained earnings to total assets ratio, obtained the results shown in Table 2.

As can be seen from Table 2, the three sectors in recent years, the proportion of internal financing only up to 20.70%, internal financing in the overall proportion of funding sources is not high from the industry perspective, the mechanical apparatus is and wholesale and retail trade, two sectors were lower than the proportion of 15%, but from 2001-2009, the retained earnings in the proportion of overall funding is more sustained and stable growth trend of: machinery and equipment industry from 2001 meters to 6 .62% ​​to 14.03% in 2009, wholesale and retail trade industry from 2001 to 6.21% up to 12.15% in 2009, indicating that in these two industries, the importance of internal financing increasingly The higher, the company increased the strength from internal financing, while electricity, gas and water production and supply of retained earnings in total assets, although the proportion of the overall fluctuations, but the overall trend is downward, in 2001 the proportion of to 16.69% in 2009, has been reduced to 10.39%, indicating that the industry has reduced the importance of internal financing, the company gradually tend to incorporate more external funding.

3.2 external equity financing
External financing is the company to the company by certain Economic agents other than fund-raising activities external financing usually includes two aspects: external debt financing and external equity financing. As China's stock market opening and further development of external equity China's external financing has become an important way of financing. analysis of the stock index, the results obtained as shown in Table 3.

As can be seen from Table 3, as another major source of external financing, external equity financing in the three sectors in the proportion showing a more consistent, declining trend: the three sectors of the proportion of external equity financing are from 2001 40% down to about 20% in 2009 from the perspective of the amount of financing, listed companies continued to reduce the external financing preference shares.

3.3 Analysis of the external debt financing
All along, the debt financing is an important source of company funds, as China's financial market development, debt financing in the company's financing structure, what changes have occurred, is the need to explore, according to the balance sheets of listed companies to calculate the three industry, asset-liability ratio, the results shown in Table 4.

As can be seen from Table 4, since 2001, three industry average asset-liability ratio of water in the rising trend of: machinery and equipment instrumentation industry asset-liability ratio of 45.18% from 2001 up to 2009 of 61.36%, wholesale and retail trade industry increased debt level from 52.14% to 63.74%, while electricity, gas and water production and supply the largest increase, from 37.64% up to 66. 60%, while in 2009, three industry average asset-liability ratio of water in 60% to 70% of the interval. shows that since 2001, listed companies to increase the proportion of external debt financing.

3.4 Structural analysis of cash flow financing
The use of cash flow from the flow indicators point of view, the results obtained is shown in Table 5.

Table 5 shows three sectors in the traffic indicators are lower than 25%, and after 2002, the indicators are below 15%, indicating that external equity financing in the overall financing of listed companies continued to decrease in the proportion, less than the size of external financing debt financing.

In addition, the three sectors of the index fluctuations are large, and relatively consistent trend of change: In 2005, the lowest proportion are local, while in 2007 almost as a local maximum point (wholesale and retail trade industries slightly different, This trend and the overall trend of China's stock market is very similar, and thus can be inferred that the stock market price of the listed company's external equity financing to a certain extent, thus affecting the company's financing decisions.

3.5 Structural analysis of debt financing
In the previous analysis, we do not distinguish between the debt limit, that is, short-term financing and long-term financing as no difference, but, strictly speaking, the financing decisions of the said debt should be long-term debt, therefore, need the maturity structure of debt financing for analysis.

Unable to get traffic in the data, this analysis only for the stock, respectively, from both broad and narrow angles. First of all, from the broad perspective, to calculate the non-current liabilities in total liabilities in the proportion shown in Table 6 shown.

Links to free download http://www.hi138.com can be seen from Table 6, instrumentation and mechanical equipment, wholesale and retail trade industries, non-current liabilities in total liabilities in the proportion of about 10%, accounting for relatively low, indicating that these two industries, the current liabilities in total liabilities to dominate, and in electricity, gas and water production and supply industry, a higher proportion of non-current liabilities, from 2003-2009, its proportion has reached 50%, indicating that the financing of non-current liabilities financing amount is higher than the amount of current liabilities.

From the vertical perspective, non-current liabilities in total liabilities in the accounts for the relatively stable, but stability is also shown in a slight upward trend, indicating that non-listed companies to gradually increase the flow of debt financing.

Secondly, from the narrow point of view, long-term loans to total loans compared, obtained the results shown in Table 7.

Data, instrumentation and mechanical equipment, wholesale and retail trade industry's long-term loans / total loans ratio of less than 0.3, indicating that the proportion of long-term borrowing is still relatively small, short-term borrowings still occupy the dominant position, however, the ratio of slow growth trend: machinery and equipment instrumentation industry gradually from 0.27 in 2001 dropped to 0.17 in 2004, followed by gradually increased to 0.29 in 2009, wholesale and retail trade industry from 2001 to 0.14 in 2009 to 0 .27, indicating that, compared with short-term borrowings, long-term loans with faster growth, while electricity, gas and water production and supply industry, the ratio is higher than 0.6, reflecting the dominance of long-term loans, however, The proportion of the overall trend is downward: from 0.77 in 2001 down to 0.66 in 2009, indicates that the share of industry in the short-term borrowing is increasing.

3.6 indirect, the proportion of direct financing
Direct financing of the company directly to investors through securities issued securities such as stocks, bonds, etc., in order to obtain funding as a means of financing and indirect financing through commercial banks and other financial companies to complete financing of the media acts as a means of financing. Two Ways advantages and disadvantages, this section aims to analyze these two approaches in the use of listed companies. calculate the three sectors of the indirect than direct financing, the results shown in Table 8.

As can be seen from Table 8, instrumentation and mechanical equipment, the ratio of wholesale and retail trade industry were less than 1, indicating that these two industries are smaller than the size of the indirect financing of the size of direct financing, but from a dynamic perspective, the indirect financing / ratio of direct financing showed a slight upward trend in volatility: the former in 2001 to 0.36 in 2009 rose to 0.48, which increased from 0.56 in 2001 to 0.70 in 2009, indicating an increase in the proportion of indirect financing. Relative to these two sectors, electricity, gas and water production and supply of this ratio increased even more sharply, the trend is more obvious: 0.44 from 2001 to 2009, rapidly rising 1.64, especially from 2006, the industry has exceeded the size of the indirect financing of the size of direct financing, which shows that companies are increasingly raising funds through indirect channels.


4 conclusions

Through the above analysis, although it can not determine whether the listed company's financing policy is reasonable, but you can draw the following conclusions:
(12001-2009 years, mechanical equipment and instrumentation industry, wholesale and retail financing of two listed companies, industry sources, although the proportion of base less than 20%, but within the increasingly high proportion of retained earnings, indicating that this listed companies in two industries more gradually into the capital from the company, at present, electricity, gas and water production and supply industry's share of internal financing is less than 20% of basic, but showing the proportion of internal financing downward trend, indicating that the listed companies in the industry have a tendency to increase the external financing.

(22001-2009 years, the three sectors the proportion of external equity financing showed a declining trend, indicating that equity financing preference of listed companies continue to reduce. To 2009, machinery and equipment industry, external equity financing instruments are mainly distributed in the proportion of 15% ~ 45%, wholesale and retail trade industry mainly in the 15% to 30%, electricity, gas and water production and supply of property owners in 15% to 40%.

(32001-2009 years, the three sectors of the external debt financing continued to increase, companies increasingly rely on debt for the average level in excess of 50%, some of the company's asset-liability ratio is close to 90%, of course, also to some extent that a country's debt ratio and is proportional to the depth of the domestic stock market development [4] point of view.

(4 indicators from the changes in flow can be seen, since 2001, the proportion of equity cash flows fluctuated downward trend confirms the findings in this regard point 3, can also be seen that external equity financing and the overall stock market trends and market a definite link.

(52001-2009 years, the three sectors in total non-current liabilities show the proportion of debt in the trend of steadily, which to some extent, shows that our optimal capital structure of listed companies, but the general structure of debt financing, the company distributed more than range can be seen that the current scale of non-current liabilities, or less than current liabilities, current liabilities of the status of listed companies is still strong. Again, the short-term borrowing is still the most important listed companies, debt funding.

(62001-2009 years, the three industries listed companies the size of indirect financing and direct financing of the ratio of the scale are increasing: machinery and equipment and instrumentation industry, wholesale and retail trade industry, direct financing of larger, but the scale of growth is more indirect financing quickly, electricity, gas and water production and supply of this trend is more obvious, starting from 2006 the size of its indirect financing has been significantly more than the size of direct financing, which shows that companies rely on indirect financing channels increased.

(7 listed companies in different industries between the financing structure, there are differences in behavioral finance, financial policy that has certain characteristics of the industry.

Main references
[1] John R Graham and Campbell R Harvey. The Theory and Practice of Corporate Finance: Evidence from the Field [J]. Journal of Financial Economics, 2001,60 (213:187-243.

[2] Yan five, Geng Jianxin, Liu Wenpeng. China's listed companies, allotment of shares Empirical Study [J]. Accounting Research, 2001 (9:21-27.

[3] Lu Zheng-fei, high strength. Financing behavior of listed companies in China - Based on the analysis of the survey [J]. Accounting Research, 2003 (10:16-24.

[4] Hu Yiming, Zeng Qingsheng. The development of cutting-edge business practices of financial management - a statistical analysis of reports based on experience [J]. China Industrial Economy, 2001 (1:74-79.

[5] Huang Shao, Zhang Gang. China's listed companies equity financing preference analysis [J]. Economic Research, 2001 (11: 12-19.

[6] Xing, Wei Feng, et al. China's listed companies financing the order of empirical research [J]. Accounting Research, 2004 (6:66-72.

[7] Liu Lijun. Under tradable equity financing preference of listed companies in China Empirical Analysis [J]. The world economy, 2005 (9.

[8] SC Myers, NS Majluf. Corporate Financing and Investment Decisions when Firms Have Information that Investors Do Not Have [J]. Journal of Financial Economics, 1984,13 (2:187-221.

[9] Wang Ping. Financial Theory [M]. Revised edition, Beijing: Economic Management Press, 2008. Links to free download http://www.hi138.com