The Influencing Factors of SEO Preference for China’s Listed Companies-An Empirical Study Based on Cox Proportional Hazard Model
Based on the panel data of A-share listed companies from 2001 to 2013, the paper, by making a study, finds that seasoned equity offerings(SEOs)of Chinese listed companies basically follow the‘Pecking Order Theory’, which means that internal financing is the primary channel. The high profitable companies prefer to choose retained earnings as the main financing channel, whereas poor profitable companies use earnings management to obtain the qualifications to SEO. Moreover,the study results also indicate that the SEO preference of listed companies is highly correlated with the ownership structure. Large shareholders squeeze the interests of minority shareholders by using financial tunneling method in order to ob?tain the excess capital gains. This paper reveals the true incentives of the SEO preference and provides an empirical basis to study and regulate the financing behavior of listed companies.
seasoned equity offeringsinitial public offeringsownership structureCox proportional hazard model
NETL
NSTL
万方数据
