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Study on Construction and Application of Financing Costs Estimating System of Chinese Enterprises
Author: ZhangLei
Tutor: LiBingXiang
School: Xi'an University of Technology
Course: Business management
Keywords: Financing costs The cost of capital The cost of the financial crisis Agency Costs
CLC: F275
Type: Master's thesis
Year: 2005
Downloads: 394
Quote: 2
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Abstract
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In recent years , China's enterprises showed strong preferences for equity financing , domestic scholars try to explain this phenomenon from different angles . This paper argues that the financing costs are a decisive factor in corporate finance , corporate equity financing preference is that the pursuit of low financing costs , financing costs whether scientific , accurate estimates become the key to solve the problem . Therefore, a combination of modern finance theory and the reality of China corporate finance cost estimation system and application system . First, a brief introduction to the meaning and classification of corporate finance , analysis of the status quo of China 's corporate finance and financing costs related to the concept of a comprehensive analysis of modern finance theory and redefine estimates focus on the cost of capital , financing costs , the cost of corporate finance , financial The four aspects of the crisis and agency costs . Secondly, in-depth analysis of existing financing cost estimation model to demonstrate the applicability of existing financing cost estimation model for Chinese enterprises to assume that the conditions of the securities market, enterprise features angle from the model itself , draw the application of the existing model of Chinese enterprises poor , can not simply apply the conclusions . Again , build our corporate finance dominant cost estimation model system of corporate equity structure , dividend policy , and liability structure characteristics . Starting from cash cost and the growth in the cost of two equity financing cost estimation model proposed for the tradable shares and non-tradable shares , respectively , and on this basis build retained earnings financing cost estimation model ; consider the part of current liabilities debt financing cost estimation model ; finance the total cost estimation model based on the idea of \In this paper, the system of the samples listed companies dominant financing costs estimates , results showed that Chinese enterprises common equity financing costs ( 84% ) is higher than the cost of debt financing , while the cash cost of equity financing common ( 87%) less than the debt financing costs. This conclusion can be drawn from the results of the estimation : My corporate preferred equity financing because its only consider cash costs , from
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CLC: > Economic > Economic planning and management > Enterprise economy > Corporate Financial Management
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